Scotland’s onshore GDP grows by 0.2% amidst Omicron uncertainty

Economy secretary Kate Forbes said the variant is bringing additional economic uncertainty.

Scotland’s onshore GDP grows by 0.2% amidst Omicron uncertainty iStock

Scotland’s onshore gross domestic product (GDP) grew by 0.2% in October – as the country seeks to recover from the economic impact of the coronavirus pandemic.

Figures published by Scotland’s chief statistician indicate that output is now 0.4% below the pre-pandemic level in February 2020.

Output in the services sector, which accounts for around three quarters of the economy, grew by 0.3% in October.

In the production sector, which accounts for around 16% of the economy, output grew by 1% in that month.

However in the construction sector, accounting for around 6% of the economy, output is estimated to have fallen by 3.4% in October.

In the three months between August and October, GDP is estimated to have grown by 0.7% compared to the previous three month period between May and July.

The statistics reflect a slowdown in growth during the fourth quarter so far, relative to the increase of 1% in the third quarter from July to September.

Scotland’s economy secretary Kate Forbes said that the speed of the Omicron variant has brought additional economic uncertainty.

“The latest GDP figures show Scottish output is now just 0.4% below the pre-pandemic level of February 2020, which is encouraging news and confirms that Scotland’s economy is in a good position to seize future opportunities,” she said.

“However, we are all too aware of the impact that Covid-19 has had – and continues to have – on business and the  wider economy.

“The emergence of the new Omicron variant and the speed at which it is spreading bring additional economic uncertainty.

“That is why the actions we have taken so far, including the latest £375m package of financial support announced by the First Minister (on Tuesday), are firmly focused on supporting businesses, protecting jobs and mitigating the continuing economic impact of Covid.

“Meanwhile the Scottish Government continues to call for greater financial flexibility from the Treasury to ensure we can act quickly to safeguard public health, reduce economic harm and build our recovery.”

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