State of the Economy report

The latest State of the Economy report has been published today by Scotland’s Chief Economist Dr Gary Gillespie.

Dr Gillespie’s report highlights:

• Annual growth of 1.9 per cent in 2015 with independent forecasters predicting continued growth through 2016 and 2017.
• The labour market remains resilient though the most recent data show employment has fallen back from the record level achieved in 2015.
• Subdued export markets, alongside domestic challenges associated with the Oil and Gas sector, are still a factor in 2016, though there is the potential for growth as impacted areas rebalance and create new opportunities.

Cabinet Secretary for the Economy, Jobs and Fair Work, Keith Brown, said:

“Today’s State of the Economy report shows that Scotland’s economy continued to be resilient in the face of extremely challenging global headwinds, with the construction sector supported by Scottish Government investment in public infrastructure.”

“The challenges facing the economy look set to persist through 2016, however, the fundamentals of the Scottish economy are strong with high levels of employment and rising productivity.

We have to be conscious of the challenges we face, and conscientious in facing up to them – but we also have to be aware of our strengths and successes if we are to be able to build on them.

“There are opportunities as Scotland also continues to be a very attractive location for business growth and inward investment. Just last week, the Ernst and Young Attractiveness Survey which ranked Scotland as the top region outside London for FDI in 2015, creating over 5,300 jobs.”

“With such strong foundations in place, the Scottish Government will continue to work with businesses to focus on growing the economy and promoting Scotland as a great place to do business.”