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Fraser of Allander Institute : Economic Commentary [June 2010]

Fraser of Allander Institute (2010) Fraser of Allander Institute : Economic Commentary [June 2010]. [Report]

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As the Scottish economy emerges from recession a slowly strengthening recovery is threatened by the massive fiscal consolidation package introduced by the new Conservative/Liberal Democrat coalition government in the emergency Budget of 22nd June. We estimate that Scottish GDP growth will be 0.1% lower this year, 0.2% lower in 2011 and 0.1% lower in 2012 as a result of the additional fiscal tightening in the emergency Budget compared to the plans of the previous Labour government