TEMPO.CO, Jakarta – Scotland is entering recession after the country’s GDP plunged 19.7 percent and made it the European country with the worst economic fallout during the coronavirus lockdown.
The country’s GDP is almost a fifth lower than before the lockdown, according to official figures reported by the Daily Express, August 19, 2020. The latest economic data, disclosed by the Scottish Government on Wednesday, show two consecutive quarters of negative economic growth.
Scotland’s GDP plunged 19.7 percent between April and June, compared with the previous quarter, after dropping 2.5 percent in the January to March period, according to the Herald Scotland report.
During the two contraction quarters, output is expected to fall by 21.7% compared to October to December last year.
Interim figures show some improvement in June, but GDP remains 17.6 percent below February levels, before lockdown measures were introduced in March.
But GDP Scotland increased 5.7% in June, according to statistics announced yesterday by the Head of Statistics.
The recession came after figures showed the UK as a whole saw a 20.4% drop between April and June in the biggest slump of any major global economy.
The drop into recession, as defined by two consecutive quarters of output declines, was the largest on record and marks the first since the 2008 financial crisis.
Dr Liz Cameron, chief executive of the Scottish Chamber of Commerce, said the economic downturn was sending a significant alarm signal.
“The fall in Scottish GDP in the second quarter sounded a warning alarm even though a decline was already projected,” said Liz Cameron.
“The 19.7 percent drop from April to June made the economies of Scotland and UK among the worst performing countries in Europe.”
“These figures confirm the Scottish economy is in a deep recession and intervention is needed now to prevent real and permanent damage to the job market,” he said.
While the Scottish Prime Minister (First Minister), Nicola Sturgeon, said it was not safe to lift Covid-19 restrictions in Aberdeen after the spike in the outbreak there, although he said the situation in the city was improving.
“Although the situation is undoubtedly improving, and I don’t want to forget about that, we are not in a position to say that this outbreak is over or completely under control,” Sturgeon said.
Stugeon hopes for some lockdown The additional coronavirus imposed in Scotland’s third most populous city could begin to be lifted next Wednesday.
– .
