Scottish economic recovery nearly complete

A report issued today by the Centre for Economics and Business Research (CEBR) revised upwards the prospects for Scottish growth over the next two years.

Forecasting 2.2 per cent growth in 2014, experts expect Scotland to exceed pre-2008 output levels and finally recover from six years of economic uncertainty.

However, questions remain over the sustainability of growth stimulated by debt-fuelled consumer spending.

The CEBR report finds that:

  • The economy will grow by 1.4 per cent in 2013 and 2.2 per cent in 2014
  • Previous figures predicted growth of 0.8 per cent this year and 1.3 per cent in 2014
  • Unemployment will continue falling and, by 2015, will be at its lowest since 2008
  • Growth will be spurred by Scotland's large business services sector.

CEBR senior economist Rob Harbron said:

"It's very encouraging to see relatively high levels of business and consumer confidence returning to Scotland, which are expected to help boost growth in 2014. Although pressures from government cuts remain on the horizon, Scotland looks to have escaped the weak growth conditions seen over much of the past five years."