Business News Round Up (01/09/2020)

UK economy unlikely to recover until 2023, KPMG says

The UK economy is unlikely to reach its pre-Covid level until early 2023, according to new forecasts. KPMG’s latest quarterly economic outlook forecasts UK GDP will plunge 10.3% for the year, downgraded from the 7.2% predicted in June. However, a second lockdown of even just four weeks could leave GDP dropping 12.6%. Positive advancements in the development of a coronavirus vaccine suggest the pandemic could be overcome by the middle of next year. If that is the case, KPMG expects growth to pick up 8.4% if a vaccine is rolled out by April, with the economy reaching pre-Covid levels by early 2023.

https://www.cityam.com/uk-economy-unlikely-to-recover-until-2023-kpmg-says/

Scotland’s growth forecast to fall 9.1% amid coronavirus slump

Scotland’s economic growth is expected to fall by 9.1% in 2020, according to the latest predictions. The ongoing coronavirus pandemic has seen KPMG revise its Gross Value Added (GVA) forecast for Scotland from a 6.8% drop to a fall of 9.1%. Looking at the whole of the UK, the accountancy firm is forecasting GDP decline of 10.3% for 2020, downgraded from 7.2% predicted in June. However, both economic measures are expected to see a recovery in 2021 – increasing by 8.2% and 8.4% respectively – if a working Covid-19 vaccine is available by April.

https://www.insider.co.uk/news/scotlands-growth-forecast-fall-91-22609643

Permanent working from home would reduce UK economy by £480 billion

The UK economy could lose almost half a trillion pounds of output if workers fail to return to their offices, a new study estimates. The research, conducted by the Centre for Economics and Business Research (CEBR) suggests that in a worst case scenario, the British economy would not return to its size before the coronavirus pandemic until 2025 if people continue working from home as they have over the past few months. The report comes in the wake of a number of major employers announcing plans to reduce their real estate substantially.

https://workplaceinsight.net/permanent-working-from-home-would-reduce-uk-economy-by-480-billion/

STV sees advertising revenue decline despite record audience growth

STV saw its audience grow at record speed but advertising dropped in the first six months of the year. The broadcaster said its overall audience figures had risen by 12%, with growth continuing as lockdown eases. Lockdown TV viewing rose 24%, with daytime viewing up 47% and STV News up 40%. But the group said its advertising revenue had fallen by 20%. Regional sales were down 18%, with national ad revenue down 23%. Online revenue was 5% up on last year. As filming paused during the pandemic, studio revenues fell 17%. Overall revenue fell 19% to £44.7 million, STV said, with a £9.1 million profit last year turning into a £4.9 million loss before tax so far this year.

https://www.insider.co.uk/news/stv-sees-advertising-revenue-decline-22609511