October 20, 2010
But Scotland's recovery at risk from UK Government cuts
Scotland's economy grew by 1.3 per cent in the second quarter of 2010, figures published today show - the highest Scottish growth rate since the second quarter of 2006. Comparable GDP in the UK grew by 1.2 per cent over the same period.
The Scottish construction sector rose by 10.4 per cent over the quarter, and there was an increase of 2.5 per cent in the production sector - both outperforming the UK as a whole.
Commenting on Gross Domestic Product (GDP), Q2 2010, Finance Secretary John Swinney said:
"After a shorter and shallower recession than the UK as a whole, today's second quarter Scottish growth rate - the highest since the second quarter of 2006 - is a strong sign of recovery, built in Scotland and led largely by the construction sector and our capital spending programme. We cannot have Scotland's recovery choked off by irresponsible cuts from Westminster.
"The strong growth in the construction sector in both Q1 and Q2 of 2010 is evidence that we were absolutely right to take decisive and comprehensive action through our Economic Recovery Plan, stimulating investment by bringing forward capital projects and delivering an infrastructure programme worth 3.3 billion pounds in 2010/11 - providing much needed support for construction and employment.
"Today's 1.3 per cent Scottish growth - higher than UK-wide growth - is a welcome and positive step in the right direction, but this recovery is under real threat from UK Government cuts that are too fast and too deep, and targeted at capital spending.
"The previous UK Government's plans for a massive real terms capital spending cut of 40 per cent between 2009-10 and 2014-15 - projections later confirmed by the new UK Government in June - exposes the scale of the cuts we expect to be visited on Scotland by Westminster.
"These cuts highlight the need for Scotland to secure economic and financial powers to grow the economy and boost revenues, building on today's encouraging GDP figures, in order to invest in our public services. Our immediate priority going forward will be to set a Scottish budget focused on protecting frontline services and doing everything we can to sustain Scotland's recovery in the teeth of savage UK cuts."
BACKGROUND
The full GDP publication can be viewed at: http://www.scotland.gov.uk/Publications/2010/10/GDP2010Q2
Scotland was a quarter later into recession in 2008 - with output falling for five consecutive quarters compared to six for the UK. As the UK experienced a deeper recession than Scotland, output grew by more in the UK during Q4 2009 and Q1 2010 than in Scotland reflecting a bounce back from a larger decline in output. The total fall from peak to trough in Scotland as a result of the downturn was 5.8 per cent - lower than the comparable drop in the UK of 6.4 per cent.
Comparable GDP in Scotland grew by 1.3 per cent in Q2 2010 with growth of 1.2 per cent in the UK.
No comments:
Post a Comment