Kevin Brown

Output remains above the pre-pandemic level of February 2020, by 0.6%.

In the three months to April, GDP is estimated to have grown by 0.8% compared to the previous three-month period. This indicates a slight slowdown in grown in Quarter 2 so far, after an increase of 1.0% in 2022 Quarter 1 (January to March).

Output in the services sector, which accounts for around three-quarters of the economy, decreased by -0.7% in April.

At the broad level, output in consumer-facing services grew by 1.1%, while health, education and public services output decreased by -1.2% and output in all other services decreased by -0.1%.

Kevin Brown, savings specialist at Scottish Friendly, commented: “The latest monthly figures on Scottish GDP showing a 0.5% fall make for worrying reading. Falling GDP is a real threat to households’ prosperity at a time when costs are soaring across the Scottish economy.

“Falling GDP is a real signal here that inflation is biting, and as a result curbing spending power. Scottish businesses and families are beginning to feel the pinch in earnest. This mixture of financial headwinds is affecting households across the income spectrum, with rising energy, food and motoring fuel costs hurting budgets the most.

“What is really important now, for those households able to maintain some level of monthly saving, is to keep contributing to short-term rainy-day funds to protect against unforeseen expenses. Longer term, Scottish savers cannot rely on cash savings alone as average rates, while rising slowly, are well behind inflation. Only through longer term investing and regular contributions will Scottish households give themselves the potential for greater returns.”