The Scotsman cartoon: Scotland’s economic recovery
Analysts are concerned that a recovery driven by an increase in household spending - the result of more borrowing, not rising incomes - may not be sustainable.
The Fraser of Allander Institute said household debt remains high and if income continues to fall and house prices remain flat, then it is difficult to see how the trend can continue.
The report said growth in production and the manufacturing sector has been stronger than the rest of the UK but weaker in the services industry.
Illustration by Iain Green
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