Economy: Scottish GDP increased in August but growth slowed

Scottish Government data shows GDP rose by 2.6% in August, compared to 6.4% in July.

Economic growth in Scotland slowed in August compared to the previous month, according to the latest estimates.

Scottish Government data shows Gross Domestic Product (GDP) rose by 2.6% in August, compared to 6.4% in July.

It means GDP remained 9.4% below what it was in February, before the onset of the pandemic.

The figures for August represent the fourth consecutive month of economic growth, but the increase was more uneven across industrial sectors than in previous months.

Output in the services sector is estimated to have increased by 3.3% compared to July, output in the production sector fell by 0.3%, while construction sector output increased by 3.8%.

Economy secretary Fiona Hyslop said: “We are taking every possible step to protect jobs as we work to rebuild our economy – backed by a package of support to businesses that totals over £2.3bn.

“While it is good news that Scotland’s GDP grew again in August, our economy remains fragile and recovery will take time.

“Given the scale of this challenge, the last thing Scottish businesses need is the UK Government inflicting further uncertainty on the economy with the looming threat of a no-deal Brexit at the end of the transition period.

“Even if a deal can be agreed, there will be severe damage caused to the Scottish economy.

“With trade negotiations ongoing, we remain in the dark about what the trading arrangements will be with the EU in less than three months’ time and it is almost impossible for firms to plan for the future.

“We will continue to do everything we can to mitigate against the consequences of the UK Government’s actions, pursued in the midst of a global pandemic.

“However, as the First Minister has made clear, it is our view that the best future for Scotland is to become an independent country.”

STV News is now on WhatsApp

Get all the latest news from around the country

Follow STV News
Follow STV News on WhatsApp

Scan the QR code on your mobile device for all the latest news from around the country

WhatsApp channel QR Code