Live updates

Advertisement

Advertisement

Doubts over Brexit and Indyref2 could slow Scottish economy, report warns

Scotland's economy is forecast to continue to recover this year but uncertainty caused by Brexit and a second Scottish independence referendum will slow growth, a new report has found.

Researchers at Strathclyde University's Fraser of Allander Institute predict the Scottish economy will continue to lag behind the UK, largely due to the downturn in the North Sea oil and gas industry.

In the three months to September 2016, the Scottish economy grew by 0.2 per cent while the UK economy grew by 0.6 per cent, while for the year Scotland's GDP increased by 0.7 per cent compared to a UK increase of 2.2 per cent.

The institute's latest forecasts for Scottish economic growth are 1.2 per cent in 2017, 1.3 per cent in 2018 and 1.4 per cent in 2019.

Institute director Graeme Roy called on both the Scottish and UK governments to "provide clarity and reassurance" over independence and Brexit respectively.

Load more updates