Scotland’s economic forecast suggests a period of slow yet steady growth, as per KPMG’s inaugural Scottish economic outlook report.
The audit giant indicates that consumer spending is set to drive the economy forward, bolstered by an uptick in incomes and a generally low saving tendency among consumers.
However, the forecast isn’t as positive for business investment, with ongoing uncertainty expected to continue into the following year.
KPMG’s projections show the Scottish economy growing by 0.4 percent this year, aligning with UK-wide expectations, with hopes for an increase to one percent by 2025.
KPMG has committed to releasing biannual updates on Scotland’s economic prospects.
Yael Selfin, KPMG’s chief economist in the UK, commented: “While our forecast shows weaker growth momentum compared with the pre-Covid decade, there are nonetheless some reasons for optimism.”
“We expect consumer demand to remain relatively solid, while the adoption of new technologies could boost productivity growth in the medium term.”
James Kergon, KPMG Scotland’s senior partner, remarked: “Businesses in Scotland will have to adjust to the long-term challenges facing the economy, including slowing population growth and a secular decline in the oil and gas activity.”
“Those able to turn this into opportunity will stand ready to reap advantages of the energy transition, while the productivity gap with the rest of the UK offers scope for catch-up growth.”
