Scottish economic growth faster than UK at start of 2018

The Scottish economy grew by 0.2 per cent in the first quarter of 2018, above the UK rate of 0.1 per cent.

Although still very low, the figures buck a trend which has seen Scotland lag behind the UK in economic growth in recent years.

It is the fifth consecutive quarter to see growth in the Scottish economy.

The figure derives from strong growth in services and production but despite a sharp fall in construction, which has been contracting for nine consecutive quarters.

It is thought the ‘Beast from the East’ snowstorm in March impacted this sector more than others.

Year-on-year Scottish GDP grew by 0.8 per cent.

Finance, Economy and Fair Work Secretary Derek Mackay said the figures showed Scotland’s economy was strong.

“We are seeing growth in a number of sectors from services to scientific, and production to professional services. It is also encouraging to see last year’s pick up in the production industries, linked to improved sentiment in the oil and gas sector, continue into the start of this year,” he said.

“We are supporting the economy with the most competitive business rates package in the UK, increased investment in enterprise and skills and the delivery of the National Manufacturing Institute and Scottish National Investment Bank.”

He added Brexit remained the biggest economic threat.

However, Scottish labour’s finance spokesperson Jackie Baillie called the figures “deeply troubling”.

“GDP growth in Scotland has now plummeted from 0.8 per cent in the last quarter to just 0.2 per cent at the beginning of 2018 – figures in keeping with the Scottish Fiscal Commission’s dismal forecasts for the Scottish economy,” she said. 

“It is increasingly clear that former SNP economy minister Keith Brown was in denial about his mismanagement of our economy – and was content simply to try and blame Westminster for all Scotland’s economic woes.

“That was not good enough – and these figures show his replacement Derek Mackay will need much more than SNP spin to tackle the mammoth task of rebuilding Scotland’s ailing economy.”

Scottish Liberal Democrat economy spokesperson councillor Carolyn Caddick said Brexit was to blame for slow growth.

"These GDP numbers show the Scottish and UK economies are shuddering to a halt,” she said.

"The catastrophic news from Airbus and others about what the cost of Brexit means for high-wage and high-skill jobs shows things are going to get worse unless there is a change of direction.

"People should be on the streets in protest. People deserve a vote on the final Brexit deal to give them a chance to stop the economic damage."