Scottish economy grows 0.3 per cent

The modest rise marks the fourth consecutive quarter of positive growth in Scotland and compared to the same quarter last year, the Scottish economy has grown by 1.1 per cent.

Taken over the year, annual GDP increased by 0.8 per cent in 2017, improving on Scotland’s economic performance in 2016 where GDP grew by 0.2 per cent.

In the latest quarter, growth was driven by a number of sectors, with the largest contributions from business services and finance, distribution, hotels & catering, manufacturing, and electricity & gas supply.

Overall the Services sector grew by 0.5 per cent, and the Production sector grew by 0.9 per cent. Whilst Construction sector output fell by 2.6 per cent it remains around 15 per cent higher than at the beginning of 2014.

During the fourth quarter of 2017 output in the Services sector grew by 0.5 per cent, output in Production grew by 0.9 per cent and output in the Construction sector fell by 2.6 per cent.

Scotland’s GDP per person, which is adjusted to account for changes in the size of the population, increased by 0.2 per cent during the fourth quarter of 2017.

Minister for Employability and Training Jamie Hepburn, said: “With four consecutive quarters of positive growth in 2017, Scotland’s economy continues to show strength. Compared to the same point in 2016, Scotland’s economy grew by 1.1 per cent, growing 0.3 per cent during the final quarter of 2017.

“These figures are welcome, but we are determined to do more to grow our economy and protect Scotland from the headwinds of Brexit.

“The Scottish Government is investing a record £2.4 billion in enterprise and skills, £4 billion in new infrastructure and £600 million in broadband, to ensure every home or business premise in Scotland has access to superfast broadband and that we can secure the benefits of the digital economy - a commitment unmatched across the UK.

“And we are preparing for the future with investments in a new National Manufacturing Institute and the establishment of the Scottish National Investment Bank.

“As we face the potential impact of Brexit to come, the Scottish Government is determined to protect Scotland’s economy and ensure our potential is not derailed by damaging decisions of the UK Government.”

Liz Cameron, chief executive and director at Scottish Chambers of Commerce, said: “Whilst it is positive to see that Scotland’s economy as a whole has experienced uninterrupted growth throughout the course of 2017, it should be noted that these growth levels remain below historical averages.

“Although Scotland was able to outpace overall UK growth in the first quarter of this year, this trend has not continued, and Scotland’s annual growth still sits behind the UK’s rate as a whole.

“Positive changes to the business environment will act as an important enabler to enhance growth for the rest of the year, such as the continuing reform of the business rates system in Scotland, the first wave of which came into effect this April.

“Our economic data continues to show that recruitment difficulties remain top of mind for Scotland’s businesses. Making sure that Scotland continues to attract and develop the talent required to power the growth of businesses across the country is a priority for SCC, and working in collaboration with Scottish and UK Governments will be key to achieve appropriate solutions.”