Tuesday, 5 September 2017

Scotland slips down economic ranking of UK regions.

New businesses in Scotland are adding fewer jobs to the economy than in any other part of the UK, according to new research that shows other regions moving ahead in economic prosperity rankings.

The UK Prosperity Map ­produced by Barclays Wealth and Investments puts Scotland in ninth ahead of Wales, Yorkshire and the Humber and North East, down two places on the previous year and far behind the UK’s most prosperous areas, London and the South-east.

A range of indicators are used to measure prosperity, including the number of millionaires living in each area, average earnings, business growth rates, house prices and GDP per capita.

According to the study, average earnings are the third highest in the UK, rising by 2.5 per cent over the year to £27,032, but Scotland lags behind in other indicators.

House prices rose by 2 per cent over the year, and growth in consumer spending was also below average, rising by 9 per cent over the year ­compared with 14 per cent nationally.

READ MORE: Scotland’s economy facing more bleak news as Brexit starts to bite
And opposition parties seized on figures showing the “birth-to-death ratio” of jobs created by new companies to jobs lost through company closures was the lowest in the UK, prompting calls for reform of business rates.

John Godfrey, director for Scotland at Barclays Wealth and Investments, said the ratio “appears to indicate reduced start-up activity”.

Full story at Scotsman.

By Paris Gourtsoyannis.

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