Scottish economy resilience amid global challenges

Output in the services sector, which accounts for around three quarters of the economy, is estimated to have grown by 0.5%, after falling by 0.3% in July. Production sector output fell by 1.1% in August, with a fall of 2.3% in manufacturing making the largest negative contribution to the overall GDP result.

In the three months to August, GDP is estimated to have been flat (0.0% growth) compared to the previous three month period. This reflects an improvement during the third quarter of 2023 so far, relative to the unrevised fall of 0.3% in Quarter 2 (April to June) reported in the Quarterly National Accounts also released today.

Commenting on the figures, Wellbeing Economy Secretary Neil Gray said:

“These figures demonstrate the resilience of the Scottish economy against the extremely challenging circumstances faced by countries around the world.

“But, as highlighted by our Consumer Sentiment Index, the cost-of-living crisis continues to impact household and businesses’ ability to spend, which in turn affects the wider economy.

“And Scottish businesses also continue to suffer due to the effect Brexit has had on supply chains, trade, and the free movement of people, which has in turn had a significant impact on businesses in terms of staffing.

“I am not content with minimal growth levels for Scotland as part of the UK when our European neighbours have recently had much stronger growth than us.

“By focusing on the principles of equality, opportunity, and community, an independent Scotland can build a fair, green and growing economy.”

“Ultimately, this crisis has been worsened by the UK Government’s handling of the economy. We are doing everything possible with the powers currently available to us to support businesses.

“That is why our New Deal for Business Group to reset the relationship between government and industry is focusing on co-designing policies that will have a positive impact on the day-to-day operations of business.”