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Scottish economy reflects global downturn
28/01/2009
Scotland's economy shrank by 0.8 per cent between July and September last year.
GDP statistics for Quarter 3 2008, released today, show that:
- Scottish GDP rose by 1.4 per cent over the year and fell by 0.8 per cent over the quarter
- In comparison, UK GDP grew by 1.9 per cent over the year and fell by 0.6 per cent over the quarter.
Finance Secretary John Swinney said:
"These figures reflect the global economic difficulties all countries are facing up to.
"There are some positive economic indicators for Scotland - our employment rate exceeds that of the UK, we have lower unemployment and higher economic activity than the UK average, while we also have areas of real strength like renewable energy.
"But it is clear that the Scottish economy is now likely to follow the UK economy into recession. That's why, since last summer, we have been concentrating on doing our best to emerge quicker and stronger from the downturn than our competitors. It is why we are doing everything within our powers to help families and business, and keep the economy moving, with the delivery of our economic recovery programme.
"We are providing practical support to create and keep jobs - this month we have created 500 jobs by awarding the contract for the M80 Stepps-Haggs project and seen 1,300 Scottish jobs created or safeguarded through our Regional Selective Assistance programme.
"These tough economic times demonstrate yet again the imperative of pushing ahead with the spending plans in our Budget Bill, which will accelerate £230 million of capital spending in the next financial year, supporting nearly 5,000 jobs. They demonstrate that we must all work together for the good of Scotland. Now is not the time to allow political differences to derail these important measures for our economy.
"We will continue to press the UK Government to relax its inflexible accounting rules and provide the flexibility for the Scottish Government to invest in our economy - and we want the Scottish Government and Parliament to have borrowing powers and full financial responsibilities."