Scotland's economic growth falls behind UK

Last year, Scotland's GDP growth was 0.8%.

Author: Clyde NewsPublished 4th Apr 2018
Last updated 4th Apr 2018

Scotland’s annual GDP growth in 2017 was less than half that of the UK, according to new figures.

Last year, growth rose by 0.8% in Scotland and 1.8% across the UK.

Despite this, Scottish economic growth increased during the final three months of 2017.

Between October and December in Scotland, there was a 0.3% rise in GDP growth - up 0.2% from the previous quarter.

Across the UK, there was a 0.4% rise in GDP growth in the final quarter of the year.

The Scottish Government has reiterated its determination to give the economy a boost in the run-up to Brexit.

Ministers have warned that Scotland must not be “derailed by damaging decisions of the UK Government''.

Scottish Secretary, David Mundell, said it was “increasingly concerning that a significant gap persists between Scotland's economy and the rest of the UK''.

Scotland’s GDP in the last quarter of 2017 was 1.1% higher than it was in last quarter of 2016, according to data.

The services sector makes up 75% of Scotland’s economy and, in the most recent quarter, it grew by 0.5%.

However, construction output fell by 2.6% in the last quarter of 2017 – a 6.5% drop from the last quarter of 2016.

Liberal Democrats have labelled the figures “pathetic”, with economy spokeswoman Councillor Carolyn Caddick saying: “People will be disappointed that for all their speeches, SNP ministers have not been able to keep pace with the growth in the rest of the UK. UK growth itself is pretty pathetic.''

Jamie Hepburn, Minister for Employability and Training, said: “With four consecutive quarters of positive growth in 2017, Scotland's economy continues to show strength.

He added: “These figures are welcome, but we are determined to do more to grow our economy and protect Scotland from the headwinds of Brexit.

“The Scottish Government is investing a record £2.4 billion in enterprise and skills, £4 billion in new infrastructure and £600 million in broadband, to ensure every home or business premise in Scotland has access to superfast broadband and that we can secure the benefits of the digital economy - a commitment unmatched across the UK.

“The Scottish Government has the powers to boost productivity and strengthen the economy, and must use them to close this gap. By making Scotland the highest taxed part of the UK, the Scottish Government risks damaging, rather than growing, our economy."