Scotland Avoids Recession As Economy Shows Modest Growth
Last updated 18th Dec 2019
The Scottish economy grew by 0.3% between between July and September according to new Gross Domestic Product Figures (GDP), after falling 0.2% over the previous three months.
The latest statistics mean Scotland has avoided falling into recession, which is defined as two consecutive quarters of negative economic growth.
Scotland was on par with the UK's overall growth rate for the third quarter of 2019.
Over the year however, GDP north of the border has risen by less than that of the UK as a whole, with the two showing 0.7% and 1% growth respectively.
The report published with the GDP figures states: "In the last two quarters, a large amount of the change in GDP was linked to stockpiling and running down stockpiles around the UK's original planned Brexit deadline in March 2019 as it was moved to the subsequent October 2019 deadline."
Finance Secretary Derek Mackay said the pace of economic growth had slowed as a result of the "continued uncertainty around Brexit".
As the Scottish Government continues to push for a second independence referendum, he insisted that Scotland had "the right to determine their own future free from Brexit as an independent member of the European Union".
The Finance Secretary spoke after the data showed Scotland's agriculture, forestry and fishing sector enjoyed growth of 1.3% for July to September - the highest growth rate of any part of the economy over the period.
The production sector grew by 0.9%, while the services sector — which makes up about three-quarters of the Scottish economy — was up by 0.2%.
Mr Mackay 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."
He also stressed the Scottish Government was "focused on delivering a stronger economy", including plans to renew the economic action plan early in the new year.
Scottish Secretary Alister Jack said: "It is encouraging the Scottish economy has grown in the last quarter but I am concerned it continues to lag behind UK-wide figures over the last year.
"The UK Government is working hard to ensure that Scotland and every part of the UK grows and prospers.
"Getting Brexit done by agreeing the Prime Minister's deal by January 31, putting this uncertainty behind us, will be good for Scotland's businesses, farmers and fishermen.
"I urge the Scottish Government to use the considerable powers at its disposal and work with us to improve the Scottish economy rather than holding it back with threats of a second independence referendum."
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