scottish economy

Scottish Economy May Lag Behind UK Average Amid Brexit: Study

In a period of next five years the Scottish economy to lag behind the UK average, said Stratchdyde University’s Fraser of Allander Institute.

It is claimed the fall of global price of oil will be the reason behind slow economic growth as gas industry has collapsed and downturn in the North Sea oil is also seen.

Director of the institute, Graeme Roy, is learned to have called the governments of Scotland as well as United Kingdom to provide clarity and reassurance over Scottish independence and Brexit too.

Roy said the economy of Scotland will continue to lag behind the UK average by the challenges faced in the oil and gas sector.

He added, “That being said, in the current climate sentiment can change quickly and there remains a high degree of margin for error in all economic forecasts at the current time.”

The researcher continued that outlook in the current year is marginally positive compared to last year and some of the business surveys there will be increase in some new orders as well as new demand.

Roy further said the Article 50 process and second independence referendum will be a headwind for many business houses in short term even though it is long-term benefits are being assumed after withdrawal of UK from EU.

He mentioned, “Just as it is the responsibility of the UK Government to provide clarity and reassurance wherever possible through the Brexit process, it is incumbent on the Scottish Government to do likewise around independence.”