KPMG trims forecasts for economic growth

Scotland’s economy is expected to shrink by 9.1 per cent this year as the pandemic takes its toll, according to KPMG UK’S latest quarterly economic outlook.

The firm’ s latest analysis, released today, is a downward revision of the 8.1 per cent contraction predicted in June.

However, growth could pick up to 8.2 per cent next year if a vaccine is rolled out by April with the economy reaching pre - Covid levels by early 2023, KPMG added. Uk-wide, the firm is forecasting GDP decline of 10.3 percent for 2020, downgraded from the 7.2 per cent fall predicted in June, with growth of 8.4 per cent in 2021.

Catherine Burnet, KPMG’S regional chair in Scotland, said :“Our latest revised forecasts for Scotland highlight the scale of uncertainty facing the country over the coming months. Across the country there appears to be some significant differences in the forecast short-term impact of coronavirus.”