Signs of an improving Scottish economy were cheered by business leaders in the north and north-east last night.
A think-tank expects gross domestic product (GDP) to grow by 1.3% in 2013, outperforming a previous forecast of 0.9%.
The prediction from Strathclyde University’s Fraser of Allander Institute comes after positive data on household spending and business optimism.
Fraser of Allander has increased its 2014 growth forecast from 1.6% to 1.8%. Its quarterly report shows an increase of 21,200 new jobs in Scotland this year, rising to 27,200 in 2014.
The unemployment forecast has been revised down from a June forecast.
Inverness Chamber of Commerce chief executive Stewart Nicol said: “This is a positive survey, which echoes the sentiments of our own recent Scottish Chambers of Commerce survey. Both reflect well – in general terms – the experience of the Highland business community.
“However, there is no room for complacency and we still need to see sustained, growing investment from both the private and the public sectors.”
Aberdeen and Grampian Chamber of Commerce chief executive Bob Collier said: “The upwards revision in predicted GDP for the Scottish economy is a welcome sign of recovery.
“But for sustained growth, we need to remain focused on international markets and opportunities overseas.”
Mr Collier said government could also play a key part in bolstering confidence in Scotland’s economic future, adding: “It can do much to contain business costs, reduce red tape, invest in infrastructure and support export growth to convert this growing confidence into a strong and sustainable economy.”
Fraser of Allander’s Professor Brian Ashcroft said: “After five successive quarters of GDP growth we are now witnessing a more robust recovery.
“However, we are still predicting below-trend growth next year, reflecting the continued relative weakness of domestic demand, in particular government spending and consumer expenditure, and only slowly rising growth in eurozone markets but stronger growth in the rest of UK.
Finance Secretary John Swinney said: “These forecasts follow on from recent GDP and labour market statistics which showed Scottish employment levels at a five-year high and the economy continuing to grow over the year.”
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