Alister Jack responds to latest Scottish GDP figures

Scotland’s GDP increased by 6.8% in July, according to statistics announced today by the Chief Statistician. The increase in the latest month follows revised estimates of 6.7% growth in June and 3.1% May, and falls of 20.1% in April and 4.9% in March.

Although GDP has increased for the last three months, it remains 10.7% below the level in February, prior to the direct impacts of the COVID-19 pandemic.

In July there has been further growth in the three main sectors of the economy. Output in the Services sector is estimated to have increased by 5.5% compared to June, output in the Production sector increased by 8.6%, and Construction sector output is estimated to have increased by 23.4%.

Read the monthly GDP Estimate for July.

Commenting on the publication of Scottish July GDP figures yesterday, Scottish Secretary Alister Jack said: “As the Prime Minister said last night, the struggle against covid is the single biggest crisis the world has faced in our lifetimes.

“The UK Government is focussed on stopping the spread of coronavirus and keeping people safe, while doing everything we can to protect the economy.

“Through the furlough and self-employed schemes, we directly supported more than 930,000 jobs in Scotland, a third of the workforce.

“Now, the Chancellor’s comprehensive Plan for Jobs is bringing in the Job Retention Bonus, creating new jobs for young people through the kick start scheme, doubling the number of work coaches, and are supporting jobs in the tourism and hospitality sectors through a VAT cut.”

Background points:

• The UK Government has directly supported more than 930,000 jobs in Scotland, a third of the workforce through the furlough and self-employed schemes.
• Over 1.8 million jobs in the hospitality sector have been supported through the Eat Out to Help Out scheme with more than 6.3 million meals eaten in Scotland.
• The UK Government has loaned more than £2.3 billion to 65,000 Scottish businesses.
• An additional £6.5 billion in Barnett Consequentials has been provided by the UK Government to the Scottish Government since March 2020.

Chancellor Rishi Sunak is expected to make an announcement on a new emergency employment scheme to replace the current furlough arrangements later today.