Scotland avoids recession as the country returns to growth

Finance Secretary Derek Mackay has again warned of the risks of Brexit as the Scottish economy returned to growth.

Latest figures showed GDP rose by 0.3% in the period July to September – after shrinking by 0.2% in the previous three months.

Scotland matched the UK’S economic growth rate for the third quarter of 2019.

Over the year, GDP north of the border has increased by 0.7% – less than the 1% growth experienced by the UK as a whole.

The latest statistics mean Scotland has escaped falling into recession – defined as two consecutive quarters of negative economic growth.

The report published with the GDP figures said: “In the last two quarters, a large amount of the change in GDP was linked to stockpiling and running down stockpiles around the UK’S original planned Brexit deadline in March 2019 as it was moved to the subsequent October 2019 deadline.”

Mr Mackay said the pace of economic growth had slowed as a result of the “continued uncertainty around Brexit”.

As the Scottish Government continues to push for a second independence referendum, he insisted that Scotland had “the right to determine their own future free from Brexit as an independent member of the European Union”.

The finance secretary spoke after the data showed Scotland’s agriculture, forestry and fishing sector enjoyed growth of 1.3% for July to September – the highest growth rate of any part of the economy over the period. The production sector grew by 0.9%, while the services sector, which makes up about three-quarters of the economy, was up by 0.2%.