SCOTTISH businesses’ overall confidence is at its highest since 2014, in terms of their optimism about economic prospects facing them in the coming year relative to conditions in the past 12 months, a survey has revealed.
The survey, published today by the Institute of Chartered Accountants in England and Wales, shows businesses in Scotland expect their UK sales to increase by 7.7 per cent in the coming year, which would be the fastest pace since the survey began in 2004.
Scottish businesses’ profits are projected to rise by 7%, with employee numbers forecast to increase by 3.5%. The ICAEW highlighted the fact these projections follow a “tough 12 months for Scottish businesses”, amid the pandemic.
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And export growth for businesses in Scotland, at a projected 5.4%, is expected to outpace that for firms in the rest of the UK over the coming year.
The ICAEW noted that, against a “backdrop of considerable uncertainty from the pandemic”, businesses had cited regulatory requirements as the “main growing challenge”.
It added that this likely reflected “both Brexit difficulties and Covid-19 related restrictions”.
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David Bond, ICAEW director for Scotland, said: “It’s positive news for Scotland’s economic recovery that business confidence has hit its highest point since 2014 as companies look to the future following the success of the UK’s vaccine rollout.
“The past year has been very challenging for Scottish companies, but with expected increases in domestic sales, exports and profits over the next 12 months, the prospects are promising."
He added: "However, even as the economy unlocks, companies will be mindful of global health and economic problems which could still see muted recovery for UK businesses, so it’s vital that the new Scottish Government works closely with businesses to plan a path to a sustainable economic recovery and vibrant future.”
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