Slow start to year for Scottish economy

Scotland’s GDP performance was predictably poor in the first quarter of 2018. JOHN MCLAREN

Scotland’s economic growth was described as “predictably poor” in the first three months of this year.

Data from the Scottish Government showed GDP was up 0.2% over January to March, compared to 0.1% for the UK.

But economic growth in Scotland was down on the final quarter of 2017 - when GDP had risen by 0.3% – and over the course of the last year the UK outperformed Scotland.

Comparing the 12 months to March 2018 to the previous year, Scotland’s GDP grew by 0.8% – while the UK achieved twice that with a 1.6% rise.

The most recent figures also showed while output in the services and production sector grew by 01.4% and 0.9% respectively in the first quarter of 2018, construction contracted by 3.5%.

This fall was in partly blamed on the adverse weather experienced during February and March, which was dubbed the “Beast from the East”.

Economist John McLaren said: “Scotland’s GDP growth performance was predictably poor in the first quarter of 2018, given the well sign-posted slump in the construction output.

“The underlying position has improved somewhat, with manufacturing and private sector services combined showing growth of 2% on a year ago.”

Stuart Mackinnon, from the Federation of Small Business added: “With new figures out today showing growing business confidence, it is up to policymakers to nurture this newfound optimism.”