Scotland’s chief economist has said that a no-deal Brexit would lead to a “major dislocation” to the Scottish economy.
The report that was published on Wednesday by Gary Gillespie, Scotland’s chief economic adviser has indicated that there will be disruptions to investment, trade, migration, logistics supply along with market confidence may cause “significant structural change in the economy.”
It further highlighted that business activity had softened during the last months of 2018, but the report did further highlight that the Scottish economy is expected to grow by 1% and 5% throughout 2019.
However, in the event of a no-deal Brexit these economy figures may need rethinking.
Derek Mackay Economy Secretary, for the Scottish government said, “Scotland’s economy continues to perform well with further growth and record low unemployment.
“But we cannot ignore the fact that this is being put at risk by the increasing uncertainty associated with Brexit, and in particular the risk of a no-deal scenario.
“Brexit, in whatever form, will cost jobs, make people poorer, damage our society and undermine the democratic decision of the people of Scotland to remain in the EU.
“It is vital that the UK government takes immediate and urgent steps to rule out a no-deal Brexit, which threatens to have devastating consequences for our economy and extend the Article 50 process.
“Our first priority is staying in the EU, in line with the overwhelming vote in Scotland to remain, and we support another referendum on EU membership.
“Short of that, the least damaging option is to remain in the customs union and European single market of 500m people, eight times larger than the UK market alone.”
Willie Rennie, the Scottish Liberal Democrat leader said, “The Scottish economy is fragile, with low growth and businesses and consumers worried about the future.
“Conservative neglect and Labour compliance has taken us to the brink of a no-deal Brexit which would devastate the Scottish economy.
“It’s clearer than ever that we need a People’s Vote and an exit from Brexit.”