Scottish Economy Forecast To Grow Slower Than The UK

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Scottish Economy Forecast To Grow Slower Than The UK

Scotland’s economy is projected to grow more slowly than the UK over the next 50 years, according to the Scottish Fiscal Commission (SFC).

The independent body projected that Scotland’s GDP would grow by 0.9% per year on average between 2028-29 and 2071-72.

This is compared with growth of 1.4% for the UK as a whole.

Scotland’s population is also forecast to drop by as many as 900,000 people over the next 50 years.

The proportion of the population aged between 16 and 64 is projected to fall by eight percentage points by 2072, to 56% of the total population, compared with a six percentage point drop in the UK.

GDP per person is also projected to grow at a slightly slower rate than in the UK, the commission predicted, with an annual average increase in Scotland of 1.3% compared with 1.4% in the UK as a whole.

The interim projections it published on Tuesday come ahead of a full report next year on the economic challenges of Scotland’s population trends over the next five decades.

Prof Graeme Roy, the chairman of the SFC, said: “While Scotland is no different from most high-income economies in facing demographic pressures, those facing Scotland are particularly acute.

“Our fiscal sustainability report next year will explore how these will affect the Scottish budget in the future.

“Politicians and those delivering public services will need to consider how to respond to these future fiscal pressures.”

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