KATE Forbes has hailed new figures showing Scotland’s GDP growth in the second quarter of 2024 “despite the restrictions of the devolution settlement and the continuing challenges posed by Brexit”.
The Deputy First Minister was speaking after initial figures revealed GDP for the period April to June was up by 0.6% from the first three months of 2024.
That meant Scotland enjoyed the same level of economic growth as the UK as a whole in the second quarter.
With the latest rise coming after GDP grew 0.5% over January to March, it means Scotland’s economy is now estimated to be 0.9% larger than it was in April to June 2023, with this growth again matching that of the UK.
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It comes after initial GDP figures for the second quarter of this year showed that while output in the construction sector fell by 0.1%, the services sector – which accounts for the bulk of the economy – grew by 0.6%. In addition, output in the production sector was up 0.8%.
Forbes, who is also the Scottish Economy Secretary, said: “Overall these figures paint a picture of a growing and resilient economy.
“The Scottish Government has made economic growth a clear priority and I am pleased to see consistent overall growth over the past six months despite harsh economic climates.
“We are investing more than £5 billion in 2024-25 to drive the economy and further initiatives will be detailed in the forthcoming Programme for Government and our Green Industrial Strategy.”
Forbes also said she is “optimistic about Scotland’s medium and long-term economic prospects, despite the restrictions of the devolution settlement and the continuing challenges posed by Brexit”, as she vowed the Scottish Government will work with Labour at Westminster to “address these challenges”.
She went on: “A strong economy is fundamental to achieving the Scottish Government’s priorities of eradicating child poverty, growing the economy, tackling climate change and improving public services.”
As Chancellor Rachel Reeves visited Scotland on Wednesday, Scottish Secretary Ian Murray said that performance north of the Border is “critical in the UK Government’s mission for economic growth”.
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Murray said: “Rebuilding is at the root of everything we do but the £22bn black hole in spending left by the previous government – the worst economic inheritance of any incoming government since the Second World War – means that tough decisions are ahead to achieve stability.
“We are making work pay, ensuring the national minimum wage is a true living wage. And with the end of exploitative zero-hours contracts, workers will have increased job security.
“Backed by £8.3bn of UK Government investment, Scottish-based GB Energy will bring jobs and opportunity for all parts of the UK and trade talks have resumed globally to forge stronger links with our international business partners.”
It comes after Prime Minister Keir Starmer warned that the Labour government’s first Budget will be “painful”.
The same day, the Labour leader headed to Germany to hold talks which he hopes can stimulate economic growth and "turn a corner on Brexit".
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