Compared to the same quarter last year, Scotland’s GDP grew by 0.7% but the pace of growth was slower than in 2018.

Derek MacKay, finance secretary, said: “While it is good news the economy has grown in the last quarter, it is unsurprising the overall pace of growth has slowed as a result of the continued uncertainty around Brexit.

“Scotland has a strong economic foundation with a lower unemployment rate than the UK and we will continue to do all we can to stimulate growth, jobs and investment and help build economic resilience.

“However, Brexit remains the biggest threat to our economy. Just this week the Prime Minister has put the risk of a ‘no deal’ Brexit back on the table by ruling out any extension to the transition period. This would be catastrophic for Scotland’s economy.

“Scotland did not vote for Brexit and the people of Scotland have the right to determine their own future free from Brexit as an independent member of the European Union.

“We are focused on delivering a stronger economy and will be renewing our Economic Action Plan in the new year.”

Andrew McRae, Federation of Small Businesses’ (FSB) Scotland policy chair, added: “It’d be easy to dismiss these uninspiring growth figures, but they show that many people and firms have been getting on with business despite shaky confidence, rising overheads and political upheaval.

“If in 2020 we want smaller firms to drive stronger local growth, MPs and MSPs must find time to think about their needs. Across the UK, we must see a new drive to end the late payment crisis. And at Holyrood, we must see MSPs dismiss a half-baked effort to hand councils sweeping new tax powers.”