Kate Forbes

Scotland’s onshore GDP is estimated to have contracted by 0.2% in October, following unrevised 0.3% growth in September.

In the three months to October, GDP is estimated to have remained flat with 0% change, a decrease from 0.3% growth in the previous quarter.

The Scottish Government has blamed uncertainty over the UK Budget, which was announced at the end of October, for the decline.

The industry which made the biggest contribution to overall GDP in October was information and communications services, which contributed 0.2 percentage points of contraction to headline GDP.

Commenting on the figures, deputy first minister Kate Forbes said: “Following growth in the last two quarters, these figures show a stall for Scotland in October which reflects the picture for the UK as a whole and uncertainty in the lead up to the UK Budget.

“The Scottish Government has unveiled a Budget for economic growth, which will in turn put money into people’s pockets.

“This includes tripling capital investment in the offshore wind supply chain, allocating over £320 million for enterprise agencies to attract, start and support businesses and providing a further £200m to the Scottish National Investment Bank to create jobs and attract investment.

“However, I recognise that many people and businesses are still struggling with the cost of living and inflation, while also concerned about the impact of measures announced by the UK government such as the hike to employers’ National Insurance contributions.”