The latest Fraser of Allander Institute nowcast suggests that a recession in the Scottish economy, following a 0.2% contraction in GDP in Q4 of 2016, may have been averted (caveats—described in the FAI post—apply):
Looking forward, our model currently estimates growth in 2017 Q1 of between 0.2% and 0.3% and a similar rate for Q2.
The information that we have therefore — and comparing such data to historical trends — suggests that the economy has been growing during the first six months of 2017 (albeit below trend).
The latest estimates from the ONS indicate that the UK economy as a whole grew by 0.3% in Q1 of 2017.
Official figures for Scotland will be published on Wednesday.
The FAI has also published its latest Royal Bank of Scotland Scottish Business Monitor results. In summary:
The results from the Royal Bank of Scotland Business Monitor suggest that the Scottish economy grew in the 3 month period to the end of June. This offers some signs that Scottish businesses are remaining relatively resilient in the face of challenging trading conditions.
More encouraging is the outlook, with a greater proportion of businesses expecting higher levels of activity in the second half of the year. Inflationary pressures remain strong however, and this will act as a drag on some sectors. Others, particularly tourism and exporters will continue to see opportunities from the low value of Sterling.