Why Glasgow is set to bounce back fastest from Coronavirus

Report predicts economic growth in 2021

Author: Rob WallerPublished 20th Jan 2021

Economists are predicting Glasgow will recover the fastest in Scotland from the impact of Covid-19, with Scottish cities faing better than others across the UK in the pandemic.

According to the Good Growth for Cities report, compiled by PwC and think tank Demos, Glasgow's economy contacted by 10.4% in 2020 but is set to grow by 4.6% in 2021.

They're projecting growth in Aberdeen of 4.1% and Edinburgh seeing an increase of 3.9%.

The analysis used gross value added (GVA) - a measure of local economies and different sectors - and showed an average decline of 11% for cities across the UK.

The report assessed a number of "economic factors'' in 42 of the biggest cities in the UK, including jobs, health, income and skills.

Edinburgh was also the least effected city in the UK, although its economy still reduced by 9.1% last year.

Business frustration

Heather McDowall owns Niche Brow Bar in Shawlands and is telling Clyde 1 she expects their business to bounce back fairly quickly: "It's really frustrating because you know how busy you could be. "

"I have a list of clients waiting to get into the salon" - Heather

"I have a list of clients who are waiting to get into the salon." But at least, on the other hand, we have that list who are waiting for us.

"Knowing that we'll be really busy when we reopen is definitely keeping me going through this lockdown, and I think that does provide you with a wee bit of security."

Stewart Wilson, the government and health industries leader for PwC Scotland, said the report highlighted the need to look beyond traditional measures of economic success such as GDP.

"The latest Good Growth for Cities report examines a country clearly facing an enormous challenge, which has impacted the health and the economies of our towns and cities like nothing else in recent memory'', he said.

"The pandemic has shone a spotlight on existing economic and social inequalities.

Call for local action

"This reinforces the view that when the post-pandemic recovery begins in earnest, we must look beyond GDP and focus our collective efforts on tackling issues that really matter to the public, and their local economies, such as skilling, sustainable income and health and wellbeing.

"We need an approach which takes into account the strengths and needs of individual towns and cities to build more resilience and drive a fair recovery across the UK.''

He added: "This year's survey shows that Edinburgh - thanks in part to its broad spread of economic sectors - has been less impacted economically than other cities. However, in line with the rest of the UK where cities hardest-hit will be quickest to recover, it seems Glasgow will be quickest to emerge.''

The report also predicts that cities hit worst by the pandemic will see a quicker recovery, although they will still be worse off than pre-pandemic levels.

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