Scotland’s growing economy
Economic recovery expected to strengthen in 2014.
Scotland’s economy is expected to move beyond 2008 pre-recession levels of output during 2014, according to the Scottish Government’s latest state of the economy report published today.
Chief Economist Doctor Gary Gillespie’s report also highlights:
Increased competitiveness, private sector investment, and more external trade as key to sustained growth.
The outlook for productivity will determine whether future growth feeds through to higher wages or rising employment.
Where productivity picks-up, real wages will start to rise across the economy for the first time since the financial crisis. However, higher real wages overall may soften the pace of recovery in the labour market.
Challenges remain, although the report also points to a growing recovery in the UK, US, and more recently in the Euro Area as welcome developments that will in turn feed through to Scotland's domestic economy.
Responding to the report, Finance Secretary John Swinney said:
"The chief economists’ state of the economy report predicts continual progress in Scotland’s economic recovery in 2014 having seen growth continue through 2013.
"The report highlights how recent GDP and labour market statistics show the Scottish economy continuing to grow with employment levels up by 83,000 over the year.
"December’s labour market statistics also showed that Scotland has a higher employment rate, lower unemployment rate and lower inactivity rate than England, Wales or Northern Ireland.
“There will still be challenges for firms in specific industries and for some households as the recovery progresses.
“There will be no let-up in the Scottish Government’s commitment to securing economic growth, which is why in this spending review period we are investing £10 billion in capital projects, building homes, schools and facilities to support the economy.
“As ‘Scotland’s Future’ outlines, it is only with the full powers of independence that we can build a wealthier, fairer and economically sustainable Scotland ensuring that everyone benefits from our natural wealth and talent.”
The chief economist’s report, which draws together recent studies and statistics, is available at: http://www.scotland.gov.uk/Topics/Economy/state-economy/latestSofE