Scotland's Economy

Scottish Business Buzz (19.07.17)

Scotland and the EU, Economy
Written by Rhona Middler

PwC survey findings of Brexit uncertainty impact to Scottish economy. 

Despite economic growth defying expectations of such a negative impact on Scotland’s economy, a PwC survey released yesterday has also found that growth has slowed in the first half of 2017 as inflation rose sharply.

Scottish growth expected to be 1.2% in 2017 and 1.1% in 2018 – behind UK GDP growth of 1.5% in 2017 and 1.4% in 2018 – due to slower consumer spending growth and ongoing uncertainty on the outcome of Brexit negotiations.

The data suggests that although the country should avoid recession, it puts Scotland slightly at the lower end of the economic table over the coming two years, only Northern Ireland being predicted to fare worse.

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Expansion for Aberdeen Harbour to create 2,300 jobs 

Scottish Enterprise will contribute £11.7 million towards a £350 million expansion of Aberdeen Harbour, with 2,300 jobs expected to be created by 2026. The Scottish Enterprise funding is in addition to European Investment Bank support of £175 million, and around £11 million from the Aberdeen City Region Deal.

The project will provide enhanced facilities and capacity to the oil industry and help capitalise on Scotland’s burgeoning cruise tourism and renewables markets.

Chief Executive of Aberdeen Harbour Colin Parker said:

“This funding is immensely significant. It further demonstrates recognition of this strategic project as one of national and international importance. The facilities developed will transform the port’s ability to accommodate the trend for larger vessels we are witnessing across a whole range of industries, thereby encouraging commercial diversification and future-proofing the port’s ability to support large scale marine operations.”

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A rethink on Brexit is needed, say more than 60 of Scotland’s public figures

Adding to the Business for Scotland single market membership declaration, where the first 100 employers put their name to a pledge to call on all political parties to back Scotland’s membership of the single market – before Brexit negotiations began, an open letter has been published by over 60 of Scotland’s leading public figures.

The letter asks for a rethink on Brexit, and has been signed by former First Minister Henry McLeish, historian Tom Devine,  former European Court of Justice judge Sir David Edward and author of Article 50 John Kerr.

The letter says: “We see our society, economy and politics becoming ever more undermined due to the impact of Brexit.

“We recognise that a narrow majority voted to leave the European Union, but the disastrous consequences are now becoming ever clearer – every day.

“Even before the UK has left the EU, we face falling living standards, rising inflation, slowing growth and lower productivity.”

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Scottish hotel sector investment in 2017 has already surpassed last year’s total

According to real estate investor Savills, around £118 million has been invested into the Scottish hotel sector in the first half of 2017, which is around the total investment spend for last year already (at £119.7 million in 2016).

Findings by Savills indicate that overseas investors have been particularly active, with £46 million spent across six deals, and Edinburgh continues to be the key market for investment – accounting for 75% of these deals.

In Edinburgh these include PGIM’s (US) acquisition of Safestay Hostel, International Hotel Properties Limited (British Virgin Islands) buying Holiday Inn Express and a US investor purchasing The Bonham hotel.

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Biggest and best Business for Scotland annual dinner set for September 

Join the Business for Scotland network, and special guests in Glasgow on 7th September at the Crowne Plaza for our 2017 annual dinner.

With entertainment for the Lanark & District Pipe Band Juniors and 2016
X Factor semi-finalist Glasgow girl Emily Middlemas, Business for Scotland will be celebrating the future of Scotland.

Buy your individual and table tickets here.


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About the author

Rhona Middler

Rhona was Business for Scotland's Engagement Executive and Events Manager.

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