Scotland's economy could take years to return to pre-coronavirus levels, First Minister warns
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First Minister Nicola Sturgeon has said that Scotland’s economy “may not see a return to pre-crisis levels for a number of years.”
She was speaking after the release of a report by the Scottish Government’s chief economist, Gary Gillespie.
The report noted that around one in five businesses were temporarily shut down due to the virus and the UK government’s job retention scheme saw more than 750,000 people furloughed.
Turnover is down in almost every sector of the economy.
The analysis used new modelling which takes account of the different phases for easing lockdown to try to build a more accurate picture of the possible impacts.
At today's Scottish Government briefing the First Minister said: “On that basis the report forecasts a more gradual economic recovery, one that might not see us return to pre-crisis levels for a number of years – in short today’s publication confirms the scale of the economic crisis that we now face.
“And in doing that it underlines why government action is so important and why it will continue to be so important.
“The Scottish Government has already allocated more than £2.3 billion to help businesses and protect jobs and of course that is before we consider important UK-wide measures currently in place, such as the job retention scheme.
“That kind of support is helping to mitigate some of the economic impact of this crisis and it will continue to be vital as our businesses seek to rebuild.
“I want to again, today, give assurance that the Scottish Government is determined to do everything we can to support that process of rebuilding and recovery.
"We will continue to do everything possible to protect your livelihood, that's important in the short-term, but it is also vital to help lay the groundwork for a sustainable economic recovery.
“That recovery will be helped by continued progress against this virus."
The number of patients in hospital with Covid-19 Scotland has now fallen below 1000 for the first time since the end of March and currently stands at 995.
The total number of positive cases now stands at 15,582, up 29 from yesterday.
Ms Sturgeon said: “We have to be very careful about reading too much into single day figures but nevertheless I think it is reasonable to point out that this is the first time since March 30 that the numbers of patients in hospital has been lower than 1000 – so again a positive indication of the progress that we are making."
