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31 March 2021 | Economy

State of the Nation: COVID-19 scars tourism, hospitality & North East


State of the Nation: COVID-19 scars tourism, hospitality & North East

The likely long-term impact of COVID-19 on Scotland’s businesses, communities and workers is becoming clearer in SCDI’s latest State of the Nation briefing for April bringing together all the latest data in one place.

Many businesses continue to struggle in the face of lockdown or low consumer confidence – although the outlook looks more optimistic as the vaccine rolls out. Some businesses are battling for survival as reserves dwindle and retail sales fall.

Many workers remain furloughed or face the risk of redundancy – with tourism & hospitality the worst affected sector and the North East the worst affected region. Some individuals face severe scarring effects due to extended periods out of work or the workplace. Some communities face disproportionate impacts.

Key points

  • HM Treasury gives Bank of England new ‘green mandate’
  • Strong recovery could push inflation past 2% target in months ahead
  • UK exports to EU fell by over 40% in January – imports from EU fell by nearly 30%
  • 61% of workers have worked from home at least some of the time during lockdown – 19% feel more productive, but 1 in 3 feel more lonely, isolated or stressed
  • 53% of Scottish businesses ‘highly confident’ they’ll survive next 3 months
  • Over 600,000 Scottish workers (19%) still on furlough
  • 21,500 jobs (9%) lost in the North East over past 5 years – nearly half during pandemic

Download the briefing below for data and analysis on productivity, business activity, consumer confidence and employment.