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Scottish economy rebounds in first quarter of 2017

Scotland’s economy rebounded in the first quarter of this year, boosted by strong growth in the production sector.

Official figures showed GDP grew by 0.8%, having shrunk by 0.2% in the previous three months.

Scotland outstripped the UK as a whole, which saw growth of just 0.2% in the first three months of the year.

Both the Scottish and UK governments welcomed the figures which saw Scottish production grow by 3.1% and the services industry expand by 0.3%.

However, construction contracted by 0.7%.

On an annual basis, the Scottish economy grew by 0.7%

Economic forecasters had warned recently that it was “in the balance” whether the latest figures would show any improvement in the Scottish economy.

A recent report from economists at the Fraser of Allander Institute said Scotland seemed to be “stuck in a cycle of weak growth”.

It predicted that growth would pick up over the next few years, but was “likely to continue to lag behind the UK”.

The EY Scottish Item Club also warned the Scottish economy was showing signs of slowing faster than the rest of the UK as a result of fading consumer spending and firms remaining reluctant to invest.

However, a Royal Bank of Scotland survey released last week found Scottish firms were confident of expansion over the remainder of 2017, despite reporting “modest” growth in the three months to June.

Its business monitor suggested the weak pound had offered some comfort to the nation’s exporters and tourism sector.

Source: business

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