Scottish GDP shrunk 0.2% in October, latest estimates show

Scotland’s economy shrunk by 0.2% in October following growth of 0.3% the previous month, according to the latest estimates.

The decline came as the UK’s GDP contracted by 0.1% in October.

The estimates for Scotland mean that in the three months to October, GDP is thought to have remained flat with 0% change.

Deputy First Minister Kate Forbes said: “Following growth in the last two quarters, these figures show a stall for Scotland in October which reflects the picture for the UK as a whole and uncertainty in the lead up to the UK Budget.”

Scottish ministers published their own Budget proposals in early December, which will go to a vote in February following negotiations between the parties at Holyrood.

Ms Forbes continued: “The Scottish Government has unveiled a Budget for economic growth, which will in turn put money into people’s pockets.

“This includes tripling capital investment in the offshore wind supply chain, allocating over £320 million for enterprise agencies to attract, start and support businesses, and providing a further £200 million to the Scottish National Investment Bank to create jobs and attract investment.

“However, I recognise that many people and businesses are still struggling with the cost of living and inflation, while also concerned about the impact of measures announced by the UK Government such as the hike to employers’ national insurance contributions.”

Scottish Secretary Ian Murray said: “While this month’s figures are disappointing, we inherited unprecedented challenges and this will take time to repair.

“Our plan for change is putting more money in people’s pockets as we strive to raise living standards for everyone across the UK.

“Long-term growth remains our top priority and investment is key to that. We’re ploughing £1.4 billion into local growth projects over the next 10 years in Scotland, as well as backing Aberdeen-based Great British Energy with £8.3 billion.

“To ensure families feel the benefits of growth sooner, the JobCentre reform element of our Get Britain Working strategy will help secure valuable employment and reduce inactivity, while the biggest overhaul of workers’ rights in a generation is ending exploitative zero-hours contracts and rewarding hard work with a true living wage.”