The growth rate in the latest quarter has been revised up from the previous estimate of 1.3% published in March.

In quarterly terms, the level of GDP is unrevised at 1.1% below the level in 2019 Quarter 4, prior to the direct impacts of the coronavirus pandemic.

In output terms, the largest contribution to growth in Quarter 4 was from health and social work, mostly driven by a large increase in coronavirus vaccination, test and tracing activities towards the end of the year.

Overall, services sector output increased by 1.7%, production sector output increased by 1.0%, and construction sector output increased by 2.8%.

Annual GDP is now estimated to have grown by 7.4% in 2021, after a fall of 10.6% in 2020.

Economy secretary Kate Forbes said: “These updated statistics for quarter 4 2021 demonstrate the resilience of Scottish businesses and the wider economy, with 1.6% growth recorded, up from the previous estimate of 1.3%. This is despite the emergence of the Omicron variant at the end of last year and the necessary public health restrictions which were put in place to mitigate the spread.

“The economy continues to face challenges, not least the impacts of the rising costs of living and we will continue to support families and businesses through this period, including investing almost £770 million this year through measures such as Scottish social security payments that are not available elsewhere in the UK, and mitigating the bedroom tax.”

She concluded: “We have provided more than £4.7 billion in business support since the beginning of the pandemic, including around £1.6bn in rates relief which includes a continuation of 50% retail, hospitality, and leisure rates relief for the first three months of 2022-23, capped at £27,500 per ratepayer.

“The Scottish Government’s new National Strategy for Economic Transformation will be fundamental to building on progress made - by helping the economy become greener, fairer and more prosperous.”