Scottish GDP faces an "unprecedented" drop of as much as 33% due to the coronavirus outbreak, Scotland's chief economist has warned.

In a new report published on Tuesday, Gary Gillespie has said that projections north of the border partially mirror those seen in the rest of the UK as a result of the outbreak.

The report also showed that 110,000 new claims for Universal Credit in Scotland had been filed since March 15.

Assuming the lockdown measures put in force will last for three months, the report suggests that the economy could contract by 10% in March and 25% for April, before beginning recovery in July.

READ MORE: Coronavirus crisis: Glasgow pub trade is ‘ticking time bomb’

The report said: "We estimate that during the current lockdown, output in the Scottish economy could fall 33%, primarily because of business closures and other impacts of social distancing.

"This result is close to that produced by the Office for Budget Responsibility (OBR) for the UK as a whole, and broadly in line with estimates and models for other countries around the world."

Mr Gillespie's State of the Economy report added: "Ultimately, the extent of the fall in GDP will depend on both the duration of outbreak and the impact of measures taken to mitigate its spread, both of which are difficult to predict.

"What is clear from all the available evidence and predictions is impact on the economy will be unprecedented in scale and experienced across most countries."

Along with GDP, the labour market in Scotland has also contracted, seeing an increase of 110,000 in Universal Credit claims since March 15.

Around 67,000 of those claims, the report states, came in the two-week period to April 7.

Despite the increase, Social Security Secretary Shirley-Anne Somerville urged Scots to check if they were entitled to benefits during the outbreak.

She said: "It is welcome that people are claiming the support that they are entitled to from the DWP, and I would encourage people to look into what additional help is available. Even if you are not entitled to Universal Credit, there could be other assistance that you can access so it is worth checking."

Employment indexes have taken their worst hit in 20 years in both Scotland and the rest of the UK, the report found, with a spike in "unemployment related web searches" not seen since 2008.

While the report concluded that the economy and labour market in Scotland would recover from the coronavirus outbreak, a number of factors could influence the speed of the recovery, including the length of time the lockdown measures are in place for.

Economy Secretary Fiona Hyslop said: "Our response to Covid-19 is saving lives, but I am deeply aware that the pandemic is having an economic effect that is already being felt across Scotland.

"The Scottish Government is doing everything we can to support businesses at this very difficult time.

"We want Scotland to recover as quickly as possible from this outbreak, and that includes rebuilding our economy as quickly as is safely possible.

"None of us should be under any illusions about the scale of economic recovery and, as we have said before, no government will have all of those answers.

"That is why we have set up an independent advisory group to provide expert economic advice and this will be crucial to help us deal with the challenge of rebuilding our economy."

John Lewis has handed an almost £1 million payout to its former managing director, according to new figures from the retail giant.

John Lewis Partnership's latest annual report document revealed that the business paid out £939,773 to Paula Nickolds, who was ousted from the department store business in January.

READ MORE: North Sea oil and gas sector at breaking point

Ms Nickolds had worked for the business for 25 years before her departure, after failing to arrest a decline in John Lewis' trading performance.

The employee-owned company said the payout was in respect of her notice period, contributions to her legal fees and career development support.

The group also confirmed an £892,362 pay packet given to Rob Collins, who had been managing director of the group's Waitrose supermarket arm until he stepped down in October when the group's restructuring was announced.

The payouts come after hundreds of redundancies at the business, including 400 job losses linked to the closure of Waitrose stores and the loss of 75 head office roles.

John Lewis has also furloughed 14,000 staff after closing all of its 50 stores in the face of the coronavirus pandemic.

It also comes after the group said it will pay out its lowest staff bonus since 1953 as it revealed a 23% plunge in profits for the year to January 25.

Last month, new chairwoman Dame Sharon White - who took the helm at the firm in February - outlined a plan to return the group to profit growth, including "right sizing" its store estate and slimming down its head office.

Amazon warehouse staff and delivery drivers will get a £2-an-hour pay rise in recognition for their work during the coronavirus lockdown, the company said.

UK chief Doug Gurr wrote to customers on Tuesday explaining that the online retail giant has also upgraded its warehouses to Government standards on social distancing.

READ MORE: Coronavirus: Omega Diagnostics gears up for mass roll-out of virus testing kits

More than 150 changes have been made, based on World Health Organisation (WHO) guidelines, he added.

The letter comes as Amazon faces battles at its French operations, which are currently closed after a court ruled the company must only sell essential products, while staff have staged protests over virus safety fears in warehouses.

Mr Gurr wrote: "We've increased the frequency and intensity of cleaning at our sites, adjusted our practices so that our employees can observe social distancing measures, and we are providing temperature checks, as well as masks and gloves."

He added: "In recognition of their incredible contribution, we've increased the pay for employees in our fulfilment centres and delivery roles, adding a further £2 per hour on top of our current starting rate of £10.50 for the London area and £9.50 for the rest of the UK."

A further 5,000 full and part-time jobs have also been created to help ease the expected surge in unemployment, the company said.

Amazon has operated throughout the lockdown, although deliveries have been delayed and some non-essential products were removed from sale.

The company also told customers it is working with the Government to help boost testing capacity for Covid-19 in the UK.

Mr Gurr said: "Along with other partners, the Amazon logistics network is delivering test kits to diagnostic sites set up around the UK and to NHS staff and others on the front lines of this crisis."

He added that Amazon has committed £3.2 million to a fund, including support for local communities where its staff live and work, and a donation to the British Red Cross.

Previously, the company said it will give employees diagnosed with Covid-19 up to two weeks of pay, and has set up a fund for the contractors it uses for delivery and seasonal work.

News from trusted and credible sources is essential at all times, but especially now as the coronavirus pandemic impacts on all aspects of our lives. To make sure you stay informed during this difficult time our coverage of the crisis is free.

However, producing The Herald's unrivalled analysis, insight and opinion on a daily basis still costs money and, as our traditional revenue streams collapse, we need your support to sustain our quality journalism.

To help us get through this, we’re asking readers to take a digital subscription to The Herald. You can sign up now for just £2 for two months.

If you choose to sign up, we’ll offer a faster loading, advert-light experience – and deliver a digital version of the print product to your device every day.

Click here to help The Herald.

Thank you, and stay safe.