Business News Round Up (18/06/2020)
Scotland’s GDP has shrunk by almost 25% during coronavirus
Scotland’s economy has shrunk by almost a quarter since the coronavirus outbreak began, according to new government figures.
It is estimated GDP has fallen by 23% since February, which includes an 18.9% drop in April – the first full month that restrictions on business and travel were in place.
Even in March, the economy is estimated to have contracted by 5% despite Scotland only being in lockdown for the final week of that month.
Over the first three months of the year, GDP shrank by 2.5% in real terms compared with a drop of 2% across the UK.
The report by Scotland’s chief statistician said: “When viewed across the two months of March and April, the total fall in output since February is provisionally estimated as 23% and output has fallen by an unprecedented amount in nearly every industry of the economy.”
https://www.insider.co.uk/news/scotlands-gdp-shrunk-almost-25-22207168
Small firms experience slight easing of constrictions in May
Small private sector firms in the UK saw a slight easing of strains in May as the downturn in output moderated from a dearth of activity in April.
The newly-launched UK Small Business PMI from Royal Bank of Scotland, which focuses on firms employing up to 49 people, picked up some signs last month that the worst may now be over. However, small businesses remain more cautious than their larger peers about the year ahead.
Activity across all sectors registered at 26.3, a substantial improvement on April’s reading of 14.6. However, this was still well below the 50.0 mark that divides contraction from expansion, and was the second-fastest drop since equivalent records began in 1998.
Viking approval secures £580m green recovery investment for Shetland
SSE Renewables has pledged a near-£600 million investment in a giant Shetland onshore wind farm project.
The firm announced today it has taken a final investment decision on the 103-turbine Viking Onshore Wind Farm, which lost out on a UK Government subsidy bid in September.
SSE Renewables will make a £580m investment.
The 443 megawatt (MW) project it will be the UK’s largest onshore wind farm in terms of annual electricity output once complete.
The development should create around 400 jobs at peak construction, with a further 35 full-time local operation and maintenance jobs throughout its life.