SCOTTISH

ECONOMY

SABARNA JS
HISTORY

The Act of Union Highland Clearances Urban and Industrial Scotland

1707 1746 1746 1750 (Onwards) 1800

Battle of Culloden The Age of Enlightenment

The 20 century and beyond
th

First World War Scottish culture worldwide Road to Referendum

1914 1967 1990s 1999 2014

Nort Sea Oil Scottish Parliament

reconvenes
 The 2008 and 2009 recession
•Growth in the Scottish economy started to slow in 2007.

•The recession wiped 4% of output of the Scottish economy.

•GDP per head was even sharper, with a fall of 4.8% from peak to trough.

•Scotland did hold up better than the UK as a whole. UK output fell by over 6%.

•It took around 5 years for output to return to its pre-crisis level in Scotland.
 CHART 1: Scottish and UK peak to trough (and recovery) during the Great Recession
GLOBAL/UK ECONOMY

•Downturn in all major economies except Japan.

•UK private sector activities declined at the quickest rate since January 2021.

•High Inflation continues in UK - Value of pound depreciated; Increase in Interest Rate.

•UK GDP contracted adding more concern to the recession.

•Demand for goods and services fell due to economic uncertainty.

SCOTLAND ECONOMY
•GDP remains contracted by -0.2%

•In labour market, unemployment continues to persist among 16-64 year olds.

•Private sector activities contracted giving negative impact on business outlook.

•Energy prices and inflation, main challenge faced by businesses in Scotland.

•Continued pressure on businesses to raise wages to attract and retain staff.

•Instead, due to high inflation most workers experience wage cut.

CURRENT BUSINESS SENTIMENT
•Reduce in business optimism.

•Businesses unwilling to develop new products/service.

•Growth and investment projects are delayed or re-phased rather than cancelled.
 WORKFORCE
•Difficulty in balancing pay expectations of new staff with the wages and salaries of existing staff.

•Higher wages elsewhere is often the catalyst to move.

•Businesses are having to be more flexible to retain staff by;

i. Increased hybrid working

ii. Recruiting young employees

iii. Recruiting overseas nationals like Ukraine refugees who tend to stand highly qualified
ENERGY PRICES
• Difficulty in sourcing and negotiating energy contracts.

•Fall in fixed term contracts increasing level of uncertainty.

•Significant cash deposits prior to agreeing contracts.

•Hotels and high energy users shutdown during winters

•Past savings from productivity improvements are being offset by high energy costs.

•Businesses stand supportive of Energy Bill Scheme but helpful only for a short period (6 months).
 •Recent Trends in GDP - indicates that there has been a growth by
2.6%.

•Employment :

Employment in the Food and Drink growth sector stood at 119,000 in

FOOD AND DRINK 2020, accounting for 4.7% of employment in Scotland and 13.6% of
employment in Food and Drink across Great Britain.

Employment in this sector decreased by 2.5% over the latest year in

Scotland.

•Exports :

2019 - £11.7 billion, accounting for 13.4% of Scotland’s total exports.

Exports from this sector increased by 2.2% over the year.

•Turnover/Gross Value Added (2020)

In 2020, the turnover stood at £14,748.2 million. Now, there has been a
decrease of 7.6% .
 SCOTTISH DEPOSIT RETURN
SCHEME (DRS)
•Meaning
When you buy a drink in a single-use container you will pay a 20p deposit, which you get back when you return
your empty bottle or can. The scheme is designed to encourage the return of empty single-use containers for
collection for recycling.
•Regulations
i. The Deposit and Return Scheme for Scotland Regulations 2020 set out the legal requirements of the
scheme.
ii. SEPA (Scottish Environment Protection Agency) is the regulator for Scotland’s Deposit Return Scheme. 
iii. They apply to, drink producers, drink importers and anyone marketing or offering for sale drinks in
Scotland packaged in a single-use container made from PET plastic, glass, steel or aluminium sized
between 50ml and 3 litres.
.THANK YOU.