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Output hit

Scottish GDP slows as wind and hydro generation falls

wind farm

There was a fall in wind generation during the summer

A slump in wind and hydro generation led to a slowing in Scotland’s GDP in July.

The government estimates GDP to have grown by 3.4% in the three months to July, a slowdown compared to the previous quarter when it grew by 4.7%.

The largest contribution to the fall in GDP was the 9.9% drop in the electricity and gas supply subsector, due to unusually low levels of wind and hydro-generated electricity during the summer, said the chief statistician.

Scotland’s onshore GDP fell by 0.2% in July. Output remains 2.4% below the pre-pandemic level in February 2020.

Output in the services sector, which accounts for around three quarters of the economy, grew by 0.4% in July, with increases in nine of the fourteen subsectors.

The production sector contracted by 3% in July, with falls in the mining and quarrying, manufacturing, and electricity and gas supply subsectors.

Construction is provisionally estimated to have fallen by 0.4% in July, broadly in line with the UK as a whole over the course of the latest three months.

Scottish Secretary Alister Jack said: “Today’s figures underline that there are challenges ahead, and that our focus must remain on a sustainable recovery.”

Scotland’s Economy Secretary Kate Forbes said: “It is positive to see sectors, including the service sector which was particularly affected by the pandemic, continue to grow.

“Although monthly figures will fluctuate, especially in the current economic conditions, it is encouraging that the Scottish economy has grown by 3.4% in the last three months.”

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