<\/p>\n
Stephen Flynn: resilience<\/p>\n
Scotland\u2019s economy experienced a sluggish start to 2026, with onshore GDP growing by just 0.1% in the first quarter, falling significantly behind the UK\u2019s overall 0.6% expansion.<\/p>\n
Despite consecutive economic contractions in January and February, a late burst of momentum saw monthly GDP surge by 0.6% in March, according to statistics announced by the chief statistician.<\/p>\n
In the three months to March, the sector with the largest contribution to GDP was retail, wholesale and motor trades, which contributed around 0.2 percentage points of growth.<\/p>\n
Kevin Brown, savings specialist at Scottish Friendly, said: \u201cScotland\u2019s economy ended the first quarter of the year with a burst of momentum. Yet the bigger picture is still one of sluggish growth.<\/p>\n
\u201cA 0.6% rise in GDP for March is encouraging after two consecutive monthly contractions, although it was not enough to stop Scotland falling well behind the UK over the quarter.<\/p>\n
\u201cScottish GDP grew by just 0.1% in Q1, compared with 0.6% across the UK. Services and construction grew by 0.2% and 0.4% respectively, but a 0.5% contraction in production dragged on growth.\u201d<\/p>\n
Mr Brown continued: \u201cStrength in March despite a quarterly slump may reflect activity being brought forward by businesses and consumers anticipating higher costs, particularly after rising energy prices revived concerns about inflation.<\/p>\n
\u201cThat leaves UK households facing an uncertain backdrop. When growth is only inching forward, pay rises, job security and consumer confidence can all come under pressure.\u00a0\u201c<\/p>\n
Economy Secretary Stephen Flynn said: \u201cIt is encouraging to see Scotland\u2019s GDP showing growth of 0.6% in March, after overall growth of 1.4% last year.<\/p>\n
\u201cWhile this demonstrates the resilience and strength of Scotland\u2019s economic foundations, this news comes on a day in which energy bills will rise by 13% a year in July. Another price rise will hit families across Scotland hard.\u201d<\/p>\n
He said this was \u201cparticularly stark given the UK Government\u2019s broken promise to reduce energy bills by \u00a3300,\u201d but did not acknowledge how the energy market had been severely disrupted by external factors since that promise was made.<\/p>\n
He added: \u201cDelivering increased economic growth in Scotland is at the very heart of the Scottish Government\u2019s agenda.<\/p>\n
\u201cThis is why I will prioritise engagement with the business community to fully understand the environment it operates in, how we can help to ease pressures and maximise opportunities \u2013 such as that of net zero industries which a CBI report today highlights as supporting more than 105,000 jobs and bringing \u00a310 billion to Scotland\u2019s economy.\u201d<\/p>\n
\t #Sluggish #start #year #Scotlands #economy #Daily #Business<\/p>\n","protected":false},"excerpt":{"rendered":"
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