Scottish economy grows by 0.6 per cent

1 Feb 2013 03:35 PM

The Scottish economy returned to growth during the third quarter of 2012 with official GDP Statistics, published recently, showing an increase of 0.6 per cent.

Compared with the same period last year, the Scottish economy grew by 0.4 per cent.  The UK economy grew by 0.1 per cent over the year.

Looking at the major sectors in Scotland over the quarter, production grew by 1.9 per cent, within which manufacturing grew at 3.0 per cent.  There was also growth of 0.3 per cent in services.  However, the construction industry contracted by 0.4 per cent.

Scotland returned to growth without the temporary uplift attributed to the London Olympics and Paralympics (estimated at 0.2 percentage points for ticket sales alone) which contributed to a rise of 0.9 per cent in the UK for Q3 2012.

The figures are based on an updated methodology – in line with the new UK methodology introduced last year - which more accurately reflects the current state of the Scottish economy and allows for direct comparison to be made with the UK.

Finance Secretary John Swinney said:

“These figures show that the Scottish economy has returned to growth after two quarters of contraction.

“Scotland’s improved economic performance compares well to that of the UK where growth was supported by the temporary impact of the Olympics.

“However, there is no room for complacency.  Recovery remains fragile – demonstrated by last week’s flash estimate of a contraction in UK output during Q4 2012 - and the UK Government’s continuing inaction risks a return to recession for the third time since the financial crisis of 2008.

“In contrast the Scottish Government will continue to do all it can to strengthen economic growth and create jobs.  Next week we will conclude our negotiations with parties across Parliament to deliver a Budget for jobs and growth.

“Our budget prioritises construction, skills, employment and a green economic stimulus.

“Through immediate infrastructure investment we are providing a boost to Scotland’s construction sector and wider economy and we are also maintaining the most supportive business environment in the UK. 

"With the full fiscal and economic powers of independence the Scottish Government could do even more to strengthen our economy and create jobs."