Economy slumped following return of Covid-19 restrictions

GDP remains 7.4% lower than before the pandemic, the figures estimate.

Economy slumped following return of Covid-19 restrictions PA Wire

Scotland’s economic output has fallen by 3.3% since Covid-19 restrictions were re-imposed in October, Scottish Government estimates show.

The latest findings show GDP rose by 0.9% in February, but remained 7.4% lower than pre-pandemic levels.

Tiered restrictions were put in force in October, to target the local authorities hit hardest by the virus, causing widespread closures of hospitality and non-essential retail.

Between the restrictions being put in place and February, the Scottish Government estimates economic output fell by 3.3%.

The figure counters rapid increases seen across the country after lockdown restrictions were eased in the summer.

During February, the Scottish Government said output grew in the services, production and construction industries at a rate of 1%, 0.9% and 1.6%.

The estimates suggest the bump in services was due to the return of some children to primary schools after enforced closures.