GDP increases by 1% in first quarter of 2022

Newly published statistics show Scotland’s economy grew 1% in the first quarter of 2022, despite public health restrictions in place to tackle the Omicron variant.

First estimates for January – March 2022 show economic growth has been driven by increased outputs in the Construction (2.5%) and Services (1.0%) sectors.

Separate monthly GDP statistics show 0.3% economic growth in March 2022. 

The statistics follow the publication of the EY Attractiveness Survey 2022, finding that Scotland outperformed the UK as whole when it comes to attracting Foreign Direct Investment projects, a key driver of economic growth. 

The Scottish Government has recently outlined plans to focus public finances in the coming years to support the ambition to build a stronger, fairer and greener economy as one of four key priorities in the Resource Spending Review.

The Resource Spending Review commits to investing almost £880 million to support the economy, in addition to plans for continuing the Inward Investment Plan to attract more high quality inward investment in the opportunity areas and increase export growth.

Commenting on the statistics, Economy Secretary Kate Forbes said:

“It’s been an unprecedented time for Scotland’s economy – from managing the many impacts of the pandemic, mitigating the ongoing effects of Brexit, the cost of living crisis and inflation at a record 40 year high.

“These statistics show, that despite these vast and complex challenges, the public, private and third sectors that make up Scotland’s economy are resilient and have continued to grow by 1% in the first quarter of 2022.

“We will continue to support families and businesses though this period, including investing almost £770 million this year through measures such as Scottish social security payments that are not available elsewhere in the UK, mitigating the bedroom tax and increasing the Scottish Child Payment to £25. The UK Government need to do more with the powers they have to support families and businesses through the cost of living crisis.

“We have provided more than £4.7 billion in business support since the beginning of the pandemic, including around £1.6 billion in rates relief which includes a continuation of 50% retail, hospitality, and leisure rates relief for the first three months of 2022-23, capped at £27,500 per ratepayer.

“The newly published Resource Spending Review will support delivery of the initial phase of the National Strategy for Economic Transformation, in line with our ambitions to create a fairer and more prosperous country.”

Background

Read the statistical news release

Find out more about Scotland leading UK on investment

Find out more about the Resource Spending Review