Scotland’s economy grows at faster rate than UK
Scotland’s economy proved more resilient than some expected, with growth of 0.4% in the first quarter of the year, ahead of the UK growth rate of 0.1%.
This was an improvement on the 0.2% growth in the previous three month period.
The figures show that the Scottish economy remained flat in March this year, after growing by 0.3% in February (revised up from 0.2%).
The largest contribution to change this quarter came from growth in transport, storage and communications services.
Scottish Secretary Alister Jack said: “Our economic outlook is looking encouraging with the first quarter of this year showing strength due to the swift action of this Government to avoid recession.
“The UK Government is creating jobs, boosting trade and encouraging investment with more than £2.2bn invested across Scotland to encourage prosperity. Our priority is to halve inflation, reduce debt and grow the economy for the benefit of the whole of the UK.”
Since 2010, the UK has grown faster than Japan, France, and Italy, and at about the same rate as Germany. The UK was the fastest growing economy in the G7 last year.
The IMF is predicting that about 90% of advanced economies will see a decline in growth in 2023.
Scotland’s Wellbeing Economy Secretary Neil Gray said: “These figures demonstrate the resilience of the Scottish economy against the extremely challenging circumstances faced by countries around the world.
“Despite the Scottish Fiscal Commission now forecasting the economy to avoid a recession, enormous pressures remain across both the private and public sectors.
“The cost of living crisis is impacting household and businesses’ ability to spend, which in turn affects the wider economy.
“As co-chair of the New Deal for Business Group, I intend to deepen our relationship with business by working together to achieve common goals and align Scottish Government policy with business.”