State of the Nation: Scottish economy 22% smaller than before COVID-19

Nearly a quarter of Scotland’s economy was wiped out by the COVID-19 crisis, according to the latest data in SCDI’s State of the Nation briefing for August.

As more businesses and sectors look to reopen and restart, the key question will be how much of a ‘bounce back’ to February’s levels of prosperity can be achieved in the coming weeks and months.

Early evidence suggests that it could be a long road to recovery.

Key points

  • Scottish economy has now stopped shrinking but remains much smaller than a few short months ago. GDP was 22.1% smaller in May than it was in February.
  • Private sector recovered marginally in June, but growth remains far off.
  • 95% of firms report a fall a business confidence.
  • Consumer activity and confidence remains weak.
  • Joblessness has risen again to 4.3%. Young people expected to be severely impacted. Fears of a looming unemployment crisis.
  • 30% of all Scottish workers furloughed. More than half of employers expect to reduce the size of their workforce as the Coronavirus Job Retention Scheme ends.

For more, download our latest State of the Nation briefings below, which gather all of the latest data and forecasts in one place.

Downloads

State of the Nation - August 2020

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State of the Nation - July 2020

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Building Scotland's Green Recovery

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