Scottish GDP bounces back to outstrip growth across the wider UK

● Booming exports help drive economy ● Fears over construction slump

Scotland’s economy has outstripped growth across the UK over the past year.

GDP north of the Border increased by 0.4 per cent in the first quarter of the year –revised up from previous estimates 0.2 per cent, official figures show.

This means the Scots economy expanded by 1.3 per cent over the year to April, compared with growth of 1.2 per cent Uk-wide.

The rest of the UK grew by just 0.2 per cent in the first three months of the year.

A booming export picture in Scotland is helping to drive the upturn, with a 3.6 per cent hike in manufactured goods such as whisky being sold globally.

Finance Secretary Derek Mackay said the figures were “hugely encouraging.”

He added: “The Scottish Government will continue to focus on growing Scotland’s economy.

“We are investing a record £2.4 billion in enterprise and skills, £4bn in infrastructure and delivering the most competitive package of rates relief in the UK, including the Small Business Bonus, which to date has saved Scottish firms almost £1.5bn.”

The UK economy did pick up between April and June with growth of 0.4 per cent. The Scottish figures have not yet been published for this period.

The value of Scotland’s onshore GDP is estimated at £156.5bn in total, or £28,797 per person, during 2017/18. Including a geographical share of North Sea oil and gas, this rises to £170.4bn in total, or £31,367 per person.

Liz Cameron, chief executive of the Scottish Chambers of Commerce said the improving manufacturing performance was “great news”.

But she added: “Concerns remain that the construction industry continues to experience falls in output, with GDP also remaining below historical growth trends.

“The upcoming Programme for Government presents a critical opportunity for the Scottish Government to invest in our national infrastructure, in order to jump-start our construction sector and provide the foundation for increased growth rates for the entire economy.

Leading economist Professor John Mclaren, of the Scottish Trends think tank, said the figures mean average annual growth in the Scots economy since the start of the decade is about one per cent, which marks a decline on previous years.

He said: “The revised figures for Scottish GDP show a better performance of late than had been previously estimated but the post recession performance remains poor, in fact overall worse than before.”