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Third quarter results sees Scotland exit recession

Category: Scottish Economy — Mark on February 14, 2013

The Scottish economy moved out of recession from July to September last year, according to official figures released at the start of February.

The data released by the Scottish government shows that the economy grew by a surprisingly strong 0.6% in the period. It was not all good news though, with construction output contracting by 0.4% in the same time frame.

It was also down on the growth seen across the whole of the UK. Boosted by the success of London’s summer sporting events, national growth was 0.9%.

This did not affect the hotel and hospitality trade in Scotland as harshly as many feared it would. Whilst overseas visitors were down from 2011 numbers for the period, it seems domestic holidaymakers largely picked up the slack.

Construction continues to suffer throughout the nation, though. Many are managing to survive the troubles, some even thrive and grow with the use of new financial strategies.

Managing cash flow through invoice financing is increasing for example. The number of construction firms seeking such facilities has grown by nearly a fifth since 2011, with almost 2,000 companies now benefiting from the flexible schemes.

Adjusted figures have also shown that the recession in Scotland was not as deep as first thought. Firstly the growth in 2007 – 8 was less than first estimated, at 1.4% instead of the perceived 1.8%, whilst the fall into recession amounted to 5.6% – significantly down on previous estimates.

However, with poor forecasts for the final quarter of 2012 and first quarter of 2013 already, full economic recovery is still likely to be some way off.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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