Scottish GDP down 0.4 per cent in December 2021

Kate Forbes

Output remained above the pre-pandemic level of February 2020, by 0.1 per cent, according to the latest data from the Chief Statistician.

Output in the services sector, which accounts for around three quarters of the economy, was flat (0.0 per cent growth) in December. At the broad level, output in consumer facing services fell by 2.5%, while health, education and public services output increased by 0.9 per cent, and output in all other services increased by 0.3 per cent.

Output in the production sector, which accounts for around 16 per cent of the economy, fell by 3.3 per cent in December. Output in the construction sector, which accounts for around six per cent of the economy, grew by 1.9 per cent in December.

Using the experimental monthly statistics for Q4 as a whole, GDP is provisionally estimated to have grown by 1.3 per cent compared to Q3.

Annual GDP is provisionally estimated to have grown by seven per cent in 2021, following the 10 per cent fall in 2020.

Economy secretary Kate Forbes said: “The emergence of Omicron at the end of last year meant that December was a difficult time for many, which is reflected in these figures. However, the resilience and ingenuity of our business community has lessened the impact, and it is encouraging to see sectors such as construction continue to grow.

“While we know our recovery remains fragile, and that many businesses have had an incredibly challenging time over the last two years, the Scottish Government is firmly focused on supporting our economy to recover.

“Since the start of the pandemic, businesses have benefited from more than £4.4 billion of support. This includes Covid-19 non-domestic rates reliefs which have saved businesses around £1.6 billion in reduced rates bills since 1 April 2020.”