GDP rises

Scotland’s economy ‘turning a corner’ says Jack

Alister Jack at SAC hearing
Alister Jack: ‘our plan is working’

UPDATE 28 March: Scottish Secretary Alister Jack said figures showing Scotland’s onshore GDP grew by 0.6% in January is further proof that the economy is “turning a corner”.

The January uplift follows unrevised growth of 0.4% in December, according to data from the chief statistician.

In the three months to January, GDP is estimated to have fallen by 0.1% compared to the previous three month period. This indicates a slight increase in growth relative to the unrevised decrease of 0.6% in 2023 Quarter 4 (October to December).

Output in the services sector, which accounts for around three-quarters of the economy, grew by 0.5% in January.

The production sector is estimated to have grown by 0.4% in January.

The largest contribution to overall GDP came from growth in the output of professional, scientific and technical services.

The figures emerged as data on Friday from the Office for National Statistics confirmed that the UK economy fell into recession last year.

Gross domestic product shrank by 0.3% between October and December. The economy contracted by 0.1% between July and September. However, the recession is expected to be brief, with the next data benefiting from sharply lower inflation.

Mr Jack said: “Our plan is working. With the economy turning a corner and inflation expected to fall to target next quarter, long-term sustainable growth remains our focus.

“Scottish families are seeing more money in their pockets with a second 2p National Insurance cut coming on top of the 2p cut in January, meaning that 2.4 million Scottish workers will be £680 a year better off, and next month will see the biggest ever increase to the national living wage.

“Boosting business and encouraging trade and opportunities right across the UK is our priority, and we are investing more than £3billion direct into communities across all parts of Scotland.”

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