FINANCE Secretary Derek Mackay has again warned of the risks of Brexit as the Scottish economy returned to growth.
Latest figures showed GDP rose by 0.3% in the period July to September, after shrinking by 0.2% in the previous three months.
Over the year, Scotland’s GDP has increased by 0.7% - less than the 1% growth experienced by the UK as a whole, but matching it in the third quarter meaning the country has escaped falling into recession.
It is encouraging the Scottish economy has grown in the last quarter
The report said the change in GDP was “linked to stockpiling and running down stockpiles” around the changing Brexit deadlines.
Mackay, right, said the pace of economic growth had slowed as a result of the continued Brexit uncertainty.
As the Scottish Government continues to push for a second independence referendum, he insisted Scotland had “the right to determine their own future free from Brexit as an independent member of the European Union”.
The Finance Secretary spoke after the data showed Scotland’s agriculture, forestry and fishing sector enjoyed the highest growth rate of 1.3% for July to September.
The production sector grew by 0.9%, while the services sector - which makes up about three-quarters of the Scottish economy - was up by 0.2%.
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Mackay said: “While it is good news the economy has grown in the last quarter, it is unsurprising the overall pace of growth has slowed as a result of the continued uncertainty around Brexit.
"Scotland has a strong economic foundation with a lower unemployment rate than the UK and we will continue to do all we can to stimulate growth, jobs and investment, and help build economic resilience.
“However, Brexit remains the biggest threat to our economy.
“Just this week the Prime Minister has put the risk of a no-deal Brexit back on the table by ruling out any extension to the transition period.
“This would be catastrophic for Scotland’s economy.
“Scotland did not vote for Brexit and the people of Scotland have the right to determine their own future free from Brexit as an independent member of the European Union.”
He also stressed the Scottish Government was “focused on delivering a stronger economy”, including plans to renew the economic action plan early in the new year.
Scottish Secretary Alister Jack said: “It is encouraging the Scottish economy has grown in the last quarter but I am concerned it continues to lag behind UK-wide figures over the last year.
“The UK Government is working to ensure that Scotland and every part of the UK grows and prospers.
“Getting Brexit done by agreeing the Prime Minister’s deal by January 31, putting this uncertainty behind us, will be good for Scotland’s businesses, farmers and fishermen.
“I urge the Scottish Government to use the considerable powers at its disposal and work with us to improve the Scottish economy rather than holding it back with threats of a second independence referendum.”
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