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Economy maintains level of activity
21/07/2010
Following growth of 0.3 per cent in the fourth quarter of 2009 - higher than previously estimated - economic output in Scotland's economy has continued at the same level during first quarter 2010.
Today's new figures also confirm that the recession was both shorter and shallower in Scotland than across the UK as a whole. Scotland was a quarter later into recession in 2008 - with output falling for five consecutive quarters compared to six for the UK. The fall in UK GDP on a gross value added basis during the period of UK recession was 6.2 per cent, while the revised figures published today now show that the fall in Scottish GDP when Scotland was in recession was in fact 5.9 per cent.
Commenting on the GDP statistics published today, Finance Secretary John Swinney said:
"Scotland's economy emerged from recession at the end of last year, with slightly stronger growth than previously estimated. We now know that this level of economic activity continued into the first quarter of 2010.
"We welcome the fact that parts of the Scottish economy, such as construction; mining and quarrying; and agriculture, forestry and fishing, have performed more strongly over the quarter than in the rest of the UK. In particular, the construction sector grew by 2.8 per cent at a time when it fell by 1.6 per cent across the UK as a whole - with accelerated capital spending a key component of the Scottish Government's Economic Recovery Plan.
"Scotland was later into recession than the rest of the UK, and it is now confirmed on these new figures that the recession was also shallower north of the Border. Clearly Scotland's different economic cycle and stronger past performance means that there is a lagging effect in terms of recovery - and the severe winter weather will undoubtedly have impacted on key parts of the economy at the beginning of the year.
"Building a strong and sustained recovery is our priority - and the fragility of the situation confirms that the UK Government is risking recovery by cutting too quickly too deeply, and that the Scottish Government was correct to defer further Westminster cuts to next year in order to support economic activity and employment now.
"Through our Economic Recovery Plan, the Scottish Government is supporting some 15,000 jobs in Scotland. We will continue to develop all opportunities within our devolved powers to maximise benefits for Scotland's economy, such as supporting SSE's Centre of Engineering Excellence for Renewable Energy in Glasgow - which last week signed a strategic agreement with Mitsubishi, expected to create up to 1,000 jobs over the next five years.
"While our sustained action to support jobs is vital and effective, it is clearer than ever that in order to deal with the macro-economic situation that Scotland faces - along with other nations across the world - Scotland needs the same macro-economic powers as these other nations have. This would provide us with the necessary tools to accelerate recovery, boost growth and revenues in the Scottish economy, and invest in quality public services."