The Courier & Advertiser (Fife Edition)
Scottish growth slower than the UK
The UK economy has grown three times faster than it has in Scotland over the last year.
The latest GDP figures for the period April to June showed a rise of 0.1% north of the border, over the quarter, compared to a 0.3% increase recorded across the UK.
While Scotland’s service sector, which makes up the bulk of the economy, grew by 0.7% in the second quarter of 2017, production fell by 0.7% while construction slumped by 3.5% – meaning this sector has now been in decline for 18 consecutive months.
Scottish GDP was 0.5% higher than it was in April to June 2016 – but over the same period the UK economy grew by 1.5%.
Economy Secretary Keith Brown said: “Today’s figures are good news, showing the Scottish economy continuing to grow over the second quarter of this year.”
But economics expert Professor Graeme Roy, director of the Fraser of Allander Institute at Strathclyde University, noted that in five of the last six quarters, Scottish growth has been 0.1% or lower.
Initial figures for the first three months of this year suggested GDP in Scotland had grown by 0.8% – with this staving off fears the country could go back into recession.
That data has now been revised, with the increase in GDP scaled down to 0.6%.
Mr Roy said: “It is important to look at the longer-term trend given the inherent volatility in the Scottish GDP series.
“Over the year, the Scottish economy has grown around a third of the equivalent UK rate.”
Ewan MacDonald-Russell, Scottish Retail Consortium’s head of policy, described the growth as “fragile”.
He added: “With significant inflationary pressures hitting both businesses and consumers, there can be no complacency about the challenges which Scotland faces.
“With customer confidence brittle, Ministers should avoid any steps which will hit household incomes, and consequently impact on consumer spending.
“That spending is still the lifeblood of Scotland’s economy.”