Onshore GDP contracted 0.5% in a month, figures show
Deputy First Minister Kate Forbes said she was ‘disappointed’ by the statistics but she added the economy had still grown over the last year.
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Your support makes all the difference.Scotland’s onshore GDP contracted by 0.5% in November, statistics show.
The figures, released by the chief statistician, also estimate GDP reduced by 0.3% in the three months to November when compared to the previous quarter.
The largest contribution to the fall was made by the professional, scientific and technical services sector which contracted by 3.5%, amounting to a reduction of 0.3% from the overall total.
The information and communications sector made the largest positive contribution to GDP, which grew by 1.1%, amounting to 0.1% of growth.
Deputy First Minister and Economy Secretary Kate Forbes said the economy grew over the whole of 2024.
She said: “While these statistics are disappointing, I am encouraged by the fact that Scotland’s economy has grown over the past year and is forecast to strengthen further this year.
“The Scottish Government is focused on driving growth and investment. Our draft Budget for 2025-26 continues the process of building a green, fair and growing economy.
“This includes almost tripling capital investment in the offshore wind supply chain to £150 million in 2025/26 and providing funding for the Scottish National Investment Bank and our enterprise agencies.”
Ms Forbes said the Chancellor’s decision to raise employers’ national insurance contributions will have a “damaging” impact on the economy.
We are deeply concerned by the potential impact of the UK Government Budget, with higher national insurance employer contributions likely to have real and damaging consequences for businesses
The tax rise was announced in October and will take effect in April.
Ms Forbes added: “Many factors are outside the Scottish Government’s control and we are deeply concerned by the potential impact of the UK Government Budget, with higher national insurance employer contributions likely to have real and damaging consequences for businesses.”
A UK Government spokesperson said: “The Budget delivered more money than ever before for Scottish public services and the Scottish Government receives over 20% more funding per person than equivalent UK Government spending.
“It is for the Scottish Government to allocate this across its own public sector and meet the priorities of people in Scotland.
“It will also receive additional Barnett funding on top of this record £47.7 billion settlement as part of support provided in relation to changes to employer national insurance.”