SCOTLAND’S economy all but flat-lined in August, according to the latest official figures, with growth a negligible 0.1 per cent of GDP.
Scottish Government statisticians also reported onshore GDP grew by 2.6% in the three months to August, indicating a slowdown in the third quarter of the year.
Scottish GDP grew by 5.6% in the second quarter, from April to June.
The Scottish figure for August was an improvement on July’s 0.2% contraction in GDP.
However it compares to a 0.4% growth in UK GDP in August.
Scotland’s onshore economy remains 1.3% below the pre-pandemic level of February 2020, while the UK economy as a whole is 0.8% smaller.
The latest Scottish data showed the services sector growing by 0.2% in August, with increases in 11 of its 14 subsectors.
The biggest contributor to services growth in August was an 8.7% rise in accommodation and food services, as tourism and hospitality benefited from an easing of Covid restrictions.
However this was partly offset by a 3.6% fall in the health and social work sector, with Covid testing and quarantine having an impact.
Output in the production sector contracted by 0.8% in August, with falls in the three of its four subsectors, including a contraction of 2.6% in manufacturing output.
Output in the construction sector is provisionally estimated to have grown by 0.2% in August.
SNP Finance Secretary Kate Forbes said the figures were “further evidence of Scotland’s economic recovery”, with output now 1.3% below the pre-pandemic levels.
She said: “It is encouraging to see such strong growth in accommodation and food services, where activity increased by 8.7% during August.
“These businesses were particularly badly hit by coronavirus restrictions and benefited from the move beyond Level 0 on 9 August, along with other consumer-facing sectors such as arts, recreation and culture.
“It is a tribute to their innovation and resilience that they are bouncing back so robustly.
“The pandemic is not over and challenges remain, but we are working hard to ensure Scotland emerges with a stronger, greener and fairer economy.”
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