Latest GDP figures show some growth but challenges remain

Scotland’s onshore GDP grew by 0.9% in June, according to statistics announced today by the Chief Statistician. Output remains 2.1% below the pre-pandemic level in February 2020.

Services sector output grew by 1.2% in June, with increases in seven of the 14 subsectors. The largest contribution to growth was from accommodation and food services for the third month in a row as activity continued to pick up after the easing of restrictions.

Output in the production sector increased by 0.5% overall, with growth in the electricity and gas supply subsector offset by falls in manufacturing and water and waste management. Output in the construction sector is estimated to have fallen by 1.4%, broadly in line with the UK as a whole over the course of the latest quarter.

Using the experimental monthly statistics for Quarter 2 as a whole (April to June), GDP is provisionally estimated to have grown by 4.9%, reflecting a recovery in output after the fall of 1.8% during the lockdown restrictions in Quarter 1.

Scottish Secretary Alister Jack responds to June figures

Scottish Secretary Alister Jack said: “While today’s figures show some resilience, we still face challenges. A strong, sustainable recovery remains our priority.

“The UK Government put unprecedented measures in place from the very beginning of the pandemic to protect lives and livelihoods. That’s included supporting the jobs of nearly a million people in Scotland through furlough and with unprecedented financial help for the self-employed.

“More than 90,000 businesses have benefited from business loans and VAT cuts have kept firms in the hardest hit sectors afloat.

“We’ve provided the Scottish Government with more than £14.5 billion in additional funding, £1.5 billion has been invested in growth deals across Scotland and our new Levelling Up and Community Renewal Funds will benefit communities right across the UK.

“In driving our economy into recovery, our Plan for Jobs will help more people get back into work and the success of the UK Government-funded vaccine programme is paving the way for us to build back better and stronger.”

The Monthly GDP Estimate for June 2021 is available at:

https://www.gov.scot/publications/monthly-gdp-june-2021

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davepickering

Edinburgh reporter and photographer