Scotland’s Economy Bounces Back
5 July 2017
Oil and Gas stabilises as economy grows by
Expansion in the manufacturing sector has helped the Scottish
economy to grow by 0.8% - the highest rate of quarterly growth in
Scotland since the end of 2014, new figures reveal.
The positive growth figures show the Scottish economy rebounding
from negative growth in the previous quarter - with a growth rate
for the first quarter of 2017 that is four times the UK wide rate
for the same quarter.
Statistics announced by Scotland's Chief Statistician show:
- The Scottish economy grew by 0.8% in the first quarter of 2017.
UK quarterly growth in the first quarter of 2017 was 0.2%
- In the first quarter of 2017, services in Scotland grew by
0.3%, production grew by 3.1%, and construction contracted by
- Output in the metals industry, which includes much of the oil
and gas supply chain, was up significantly. This follows the
re-opening of the Dalzell steel plant after Scottish Government
intervention to secure its future, and recent business survey
evidence that output in the oil and gas supply chain may be
Economy Secretary Keith Brown said:
"Today's figures are welcome and reinforce the fact that the
fundamentals of Scotland's economy are strong. Scotland's output is
now 6% above the pre-recession level and unemployment is at its
lowest ever level.
"Since late 2014 our growth rate has been impacted significantly
by the fortunes of the North Sea with around two thirds of the
slowdown in 2016 attributed to the onshore impact of lower oil
prices. Today's figures show a rise in output in industries linked
to the North Sea for the first time since 2014. While there is no
room for complacency, these figures - alongside a number of recent
business surveys - indicate that there is growing confidence in the
"Manufacturing output is also up, in part due to the resumption of
steel production at the Dalzell plant after the Scottish Government
intervened to save this key strategic asset. The re-opening of
Dalzell is just one of the actions the Scottish Government is
taking to boost manufacturing - we are also supporting expansion of
the aluminium smelter at Lochaber and the development of a new
manufacturing centre in Renfrewshire.
"While today's figures are positive, we will continue to do
everything possible to support the performance of Scotland's
economy, particularly as Brexit uncertainty continues to cast a
shadow over the future economic outlook. The Scottish Government
will continue to use all of the powers at our disposal, including
our £6.5bn infrastructure plan and our new £500 million Scottish
Growth Scheme which opened for bids last month. We will also
continue to invest in the doubling of free childcare and offer
support for key industries including oil and gas, manufacturing,
tourism and new technologies.
"Today's figures are a welcome vote of confidence in our economy
and the Scottish Government will continue to work hard to support
it through difficult times ahead."
GDP Statistics announced by Scotland's Chief Statistician
Source - The Scottish Government website