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Economy forecast to grow at faster rate but outlook remains subdued, says report

PwC’s UK Economic Outlook report predicts a gross value added of 0.9% for Scotland in 2024.

Neil Pooran
Tuesday 16 July 2024 19:01 EDT
PwC said activity in the financial services sector is flattening out (Jane Barlow/PA)
PwC said activity in the financial services sector is flattening out (Jane Barlow/PA) (PA Wire)

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The Scottish economy is predicted to grow at a faster rate in 2024 than the previous year but the outlook remains subdued, a report has forecast.

PwC’s UK Economic Outlook report predicts a gross value added (GVA) of 0.9% for Scotland in 2024, higher than the 0.3% predicted for 2023.

It also forecast GDP growth of 1% for the UK in 2024.

London and Northern Ireland are predicted to have a higher than average rate of growth, while regions including north east England and the West Midlands are predicted to see slower growth.

PwC said the worst of the cost-of-living crisis is now in the past and it predicts the Bank of England will start its interest rate cutting cycle in August or September.

The report noted an ongoing slowdown in Scotland’s manufacturing sector, while activity in financial services is beginning to flatten after a “pandemic boom”.

Jason Morris, regional market leader at PwC Scotland, said: “Whilst the predicted rate of economic growth in Scotland for this year could be described as subdued, the figures are more positive than those predicted for the end of 2023 (0.3%).

“The regional disparities that were highlighted in last November’s UK Economic Outlook are still prevalent, signalling that productivity and skills gaps remain.

“Our recent framework for growth highlighted the key focus areas business leaders would like to see the new Government focus on in order to help drive growth – including skills and talent, infrastructure and digital transformation.

“All of these areas represent opportunities for our economy in Scotland.”

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