Scottish economy maintains growth

Scotland’s economy remained resilient going into the second half of 2017 despite a challenging economic environment and continued Brexit uncertainty, according to official data released today.

The latest GDP statistics published by the Scottish Government show the Scottish economy grew by 0.2 per cent in the third quarter of 2017, and has increased by a total of 0.8 per cent since the start of the year.

In the latest quarter, Services grew by 0.2 per cent and Production grew by 1.2 per cent after a return to growth for both manufacturing, mining and quarrying.

Economy Secretary Keith Brown said: “Despite the impact that continued Brexit uncertainty is having on our economy, today’s figures demonstrate the resilience of the Scottish Economy with the third consecutive quarter of positive growth.

“Although more modest than we would like, it is encouraging to see the economy grow by 0.2 per cent overall. Within this, it’s particularly heartening to see Services continue to expand, and Production up by 1.2 per cent, with a return to growth for manufacturing. While these figures show a fall in construction output, this is as a result of activity returning to more normal levels following our increased investment in large transport infrastructure developments over recent years, including the Forth Replacement Crossing, M8 missing link and the Borders Railway.

“Our determination to seize opportunity and grow our economy is demonstrated by the £270 million increase on economic spending we announced in the 2018/19 Draft Budget. However it cannot be stressed enough that the single biggest threat to our economy as a whole remains the lack of clarity from the UK Government over Brexit. This week the Scottish Government published analysis which showed that failure to remain in the Single Market or secure a free trade agreement would see Scotland’s GDP around £12.7 billion lower by 2030 than it would be under continued EU membership.

“I would once again call on the UK Government to give people and businesses greater certainty over the Brexit process in order to further stimulate growth in Scotland’s business communities and allow us to continue to attract and retain talent within our workforce.”

Scottish Secretary David Mundell said: “These latest GDP figures show the Scottish economy growing, but much more slowly than we would like, and continuing to lag behind that of the rest of the UK.

“The UK Government is investing - including with an extra £2 billion announced in the Budget - to increase prosperity in Scotland, and I urge the Scottish Government to use its extensive new powers to do the same. But its recent decision to make Scotland the highest taxed part of the UK risks damaging, rather than growing, our economy.

“With Scotland’s exports to the rest of the UK worth four times more than those to the EU, today’s GDP figures are a stark reminder that we need to protect the vital UK internal market. The UK Government is fully focused on making our exit from the EU work for Scotland and the rest of the UK, and we urge the Scottish Government to work constructively with us.”