Scottish economy grows by 0.1% in Q4 2022

Scottish economy grows by 0.1% in Q4 2022

Scotland’s Chief Statistician has released statistics revealing that the Scottish economy grew by 0.1% during the fourth quarter of 2022, covering the period from October to December.

According to the figures, over the year, compared to the fourth quarter of 2021, the economy has grown by 0.6%.

During the fourth quarter output in the Construction sector grew by 0.6%, output in Production contracted by -0.2%, and output in the Services sector remained unchanged (0.0% growth).

Monthly statistics show that GDP is estimated to have contracted by -0.6% in December, with weak growth in the construction sector and decreases across the services and production sectors.

The second estimate of GDP for the fourth quarter of 2022 will be available in Quarterly National Accounts Scotland, published on 26 April 2023.

Commenting on the figures, Tracy Black, director of CBI Scotland, said: “Scotland’s economy ended last year on a subdued note, with signs that widespread strikes exacerbated this weakness during the busy pre-Christmas period. With pressures on household incomes from high inflation to persist this year, it’s set to be another challenging one for both Scotland and the UK as a whole.

“That means it’s imperative for the Scottish and UK governments to maintain a razor-sharp focus on boosting growth. We urge the Chancellor to announce a replacement for the super-deduction in this month’s Budget to help get firms investing, as well as offsetting the sharp rise in corporation tax coming in the Spring.

“The new First Minister must also prioritise growth-enhancing measures. Tackling labour and skills shortages, reforming planning processes and forging ahead with improvements to digital and transport infrastructure are all critical to attracting investment and boosting growth.”

Kevin Brown, savings specialist at Scottish Friendly, added: “The arrival of spring normally brings the first signs of growth, but there is little evidence that the Scottish economy is about to spring into action.

“Official figures released today show that the economy in Scotland grew by 0.1% in the three months to December. This follows growth of -0.1% and 0.0% in the previous two quarters.

“Among the list of priorities for the new first minister will be how to get the Scottish economy going again. It remains 0.3% below pre-pandemic levels and at this rate could struggle to recover before the end of 2023.”

He concluded: “The fact that the wider UK economy is also stalling makes the challenge for the new Scottish first minster even greater. But despite the constraints they face from Westminster, they will be expected to set out a clear vision for improving Scotland’s future economic performance.

“Households have suffered from the biggest fall in living standards since the 1970s and would benefit greatly from a significant improvement in the strength of the Scottish labour market.”

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