Coronavirus could cost Highlands and Islands’ economy £2.6bn

A new report has warned the ongoing pandemic could dent the Highlands and Islands regional economy by up to £2.6bn.

The report by Highlands and Islands Enterprise (HIE) said COVID-19 was having a ‘disproportionate impact’ on the region in comparison to other parts of the country, and forecast a decline in GDP of between £1.5bn and £2.6bn.

According to the report, there were 16,175 people unemployed in the Highlands and Islands in July.

The report said unemployment rates are highest in Lochaber, Skye and Wester Ross and Argyll Lochaber, Argyll and Caithness and the Islands, with the former Skye and the Islands and experiencing the greatest increase of all area Wester Sutherland offices over the past year.

It found that 72,300 people were followed in the region between March and June and 18,300 people claimed self-employment income support from the government.

‘As the region’s economic and community development agency, we undertake and publish research and analysis on key issues,’ said HIE’s interim director of strategy and regional economy, Martin Johnson.

‘This report, therefore, builds on the information we have previously published on the different ways in which covid-19 has been affecting the region’s economy.

‘It will form part of the region’s voice, feeding into the national picture and help inform our approach to supporting businesses and communities during the recovery,’ he added.

This underlines the need to collaborate and innovate, and to draw on the many strengths this region has.

‘Natural assets such as the marine economy, for example, are expected to generate many new economic opportunities in relation to the green recovery and drive towards the net-zero targets. It’s crucial that businesses, communities, academic institutions and the public sector work together to make the most of these opportunities and rebuild our region’s economy,’ added Mr Johnson.

Photo Credit – Tama66 (Pixabay)