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Economists say Covid recovery under way – despite delay in easing restrictions

Economists say Covid recovery under way – despite delay in easing restrictions June 24, 2021, 12:04 am Scotland’s economy will return to pre-coronavirus levels three months earlier than expected, economists at the Fraser of Allander Institute said. (Damien Storan/PA ) Scotland’s economy is expected to return to its pre-coronavirus level in the summer of 2022, three months earlier than previously forecast. Experts at the Fraser of Allander Institute at Strathclyde University said their forecasts for GDP growth had been revised upwards against the “positive backdrop” of the vaccinations allowing restrictions to be eased. Back in March, economists there had forecast GDP would grow by 3.6% this year, but this has now been upped so that growth of 5.9% is expected over the course of 2021.

Think-tank Fraser of Allander ups forecast for Scottish economic growth

Think-tank Fraser of Allander ups forecast for Scottish economic growth © PA The vaccine rollout and unlocking of parts of the Scottish economy are hugely positive but the delay in a further easing of Covid-19 restrictions will cause “issues” for certain sectors. That is the message in the latest Economic Commentary from Strathclyde University’s Fraser of Allander (FoA) Institute. The pace of reopening the Scottish economy, thanks to a swift vaccine rollout, has prompted the think-tank to raise its forecast for economic growth north of the border this year to 5.9%, from 3.6% previously. FoA’s Deloitte-sponsored report adds: “We are now expecting that the economy will return the pre-pandemic levels in the summer of 2022, three months earlier than we were forecasting in March.”

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