Economy set for growth this year – but rate forecast to slow down

● Modest rise is less than was predicted in December and below UK average

The report predicted modest employment growth of 0.7 per cent in 2018, falling to 0.3 per cent in 2019. Office-based private services are again expected to generate the bulk of new jobs (33,800 from 2017 to 2021), the construction sector is expected to create 14,500 jobs as output in the sector recovers.

Sectors reliant on consumer spending and tourism, such as accommodation and food services, wholesale and retail, and arts, entertainment and recreation are also expected to grow in employment terms. While retail is expected to experience modest job losses in 2018.

Mark Gregory, EY’S UK chief economist, said: “Economic growth in Scotland is moving beyond the 0.8 per cent growth rate we saw in 2017.

“While this demonstrates that Scotland is set to successfully pull out of an economic tailspin and return to growth of above 1 per cent, there are also signs that Uk-wide economic growth will remain firmly ahead of Scotland’s in the near term.”

Scottish Conservative finance spokesman Murdo Fraser said: “Slow growth has dogged Scotland’s economy for too long, and it’s happened on the SNP’S watch.

“It’s the consequence of a government that has an antibusiness approach and has prioritised squabbling about constitutional issues above the economy.”