Scottish economy saw downturn in mid-2015

Scotland's construction sector has grown. Picture: TSPL
Scotland's construction sector has grown. Picture: TSPL
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Scotland’s economy remains “sluggish” and briefly fell into downturn in the middle of last year, it emerged today.

GDP shrank by 0.1% in the third quarter of 2015, revised figures today reveal, although it bounced back in the final quarter with growth of 0.2%.

It means Scotland has been growing more slowly in GDP terms than the rest of the UK.

“Beyond the spurt seen in the 1st quarter of 2015 Scotland’s economy was very sluggish for the rest of the year,” said economist John McLaren of Scottish Trends.

“This was despite the huge boost from the Construction sector.

“On the basis that Manufacturing has barely grown over the last 4 years and that public services will still be affected by asuterity then it will be down to Private Sector Services to pick up the pace in 2016 in order to keep the Scottish economy growing at anything approaching a reasonable pace.”

Overall the Scottish economy grew by 0.2% in the final quarter of last year. The Services sector, which accounts for three-quarters of the economy, expanded by 0.3%, but Production contracted by 0.1%, and the Construction sector grew by 0.1%.

GDP grew by 0.9% compared with the same period last year.

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