State of the Economy report

Following a stronger year of growth in 2017, Scotland’s economy has continued to strengthen in 2018 with further output growth and a strong labour market performance.

Independent forecasts expect positive growth to continue over the course of the year against a backdrop of a stronger global economy and improving outlook for the oil and gas sector.

However, Brexit uncertainty continues to impact business confidence and investment plans and remains a key risk to the outlook. 

The State of the Economy report published today by Scotland’s Chief Economist Gary Gillespie, highlights:

• GDP statistics published earlier in the week show that the economy continued to grow into the first quarter of 2018 though at below trend rate
• The labour market continues to perform strongly and close to record levels in terms of employment and the rate of unemployment
• Independent forecasts signal positive GDP growth for 2018 of between 0.7% and 1.3% rising to between 0.8% and 1.6% in 2019

Finance, Economy and Fair Work Secretary Derek Mackay said:

“Following the positive GDP data published earlier in the week, I welcome this latest State of the Economy report which provides a broader analysis of Scottish economic performance.

“With Scotland’s economy continuing to grow at the start of the year, it’s welcome to see the improving outlook for the oil and gas sector alongside the continued strong performance in our labour market.

“Scotland’s economy is strong, with output per head the highest in the UK outside London and the south-east. We are also one of the top destinations for inward investment, while Scottish productivity has grown faster than the UK’s over the past decade.

“We are using the powers we have to boost the economy and ensure that our economic potential is realised including our investment of almost £2.4 billion in enterprise and skills, the most competitive business rates package in the UK, while investing in our National Manufacturing Institute and Scottish National Investment Bank.”

Background: 

The full State of the Economy report can be read here – http://www.gov.scot/Publications/2018/06/5010