GDP growth shows ‘resilience’ of economy – Finance Secretary

GDP growth of 1.3% in the last three months of 2021 shows the “resilience” of Scotland’s economy, Finance Secretary Kate Forbes has said.

That was achieved at the same time as the emergence of the Omicron variant of coronavirus forced restrictions on some businesses.

But Ms Forbes warned there are still “challenges” for the economy, linked to the rising cost of living and the Russian invasion of Ukraine.

New figures from the Scottish Government show GDP grew more in Scotland than in the UK as a whole over the final quarter of last year.

Across the UK, GDP growth of 1% was recorded in the period October to December – but over the 12 months of 2021 the UK saw economic growth of 7.5%, compared to 6.9% in Scotland.

GDP in Scotland for October to December 2021 was 5.9% higher than the same period in 2020 – with the UK as a whole performing better with a 6.5% rise.

In the most recent quarter, the services sector – which makes up the majority of Scotland’s economy – grew by 1.5%

The Scottish Government figures also show there was growth of 1% in the construction sector over October to December, while the production sector was up by 0.3%.

Ms Forbes said: “Recording 1.3% growth during the fourth quarter of last year demonstrates the resilience of Scotland’s businesses and the wider economy.

“This is despite the emergence of the Omicron variant at the end of last year and necessary public health restrictions which impacted primarily on services.

“Over the year, compared to the fourth quarter of 2020, the economy has grown by 5.9%.

“We continue to face challenges, especially with the rising cost of living and the potential economic impact of Russia’s illegal invasion of Ukraine.

“The Scottish Government’s new National Strategy for Economic Transformation will be fundamental to building on progress made – by helping the economy become greener, fairer and more prosperous.

“Since the start of the pandemic, businesses have benefited from more than £4.5 billion of support. This includes Covid-19 non-domestic rates reliefs which have saved businesses around £1.6 billion in reduced rates bills since 1 April 2020.”