Lack of skills 'hampers growth' in the capital

News Article - 12 June 2007
Category: Business

Despite predicting a low growth rate for the Scottish economy next year, the Ernst & Young Scottish Item Club remains optimistic that businesses in the country will recover.

According to the group, the Scottish economy's growth is expected to slow to 1.8 per cent next year as the impact of the credit crunch is felt in other industry sectors.

The annual forecast by the group predicted that the UK economy would fare slightly better with 2.1 per cent growth rate for the year.

Dougie Adams, economic advisor to the Scottish Item Club, said that although the figures were a "disappointment" for Scotland, the group were still confident that nearly 15,000 jobs would be created in the country during 2008.

Hywel Ball, managing partner of Ernst & Young in Scotland, commented: "Despite the current climate, Scottish businesses and the Scottish economy is in good shape to weather any down turn and to look to the medium-term for continued strong growth.

PricewaterhouseCoopers estimates a ten per cent rise in corporate insolvencies in the new year as tighter lending conditions and a cautious investment industry take their toll on businesses, reports the Times.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »