Scotland's economic performance continues to lag behind that of the UK despite an encouraging quarterly result, the Cabinet Secretary for Finance and Sustainable Growth, John Swinney has said today.

The report showed a growth rate for the second quarter of 2007 of 0.9 per cent and annual growth of 2.3 per cent for Scotland's economy. In comparison, the UK quarterly figure stood at 0.8 per cent for Q2 2007 with annual growth of 3.1 per cent. 

Swinney said: “Despite a strong second quarter, Scotland's annual GDP growth continues to trail the UK average by a wide margin. Scotland's economy can and must do better.

“There are some encouraging numbers in this report. The utilities sector in particular has bounced back from its setback in the first quarter and this has had a significant impact on Scotland's overall growth in the quarter.

“Increasing sustainable economic growth and ending years of underachievement is the main purpose of this Government. This is why we have established the Council of Economic Advisers, reformed and refocused our enterprise networks and will soon publish an economic strategy for the whole of Scotland.

“With fuller responsibilities of independence we could give Scotland an even more powerful competitive edge.”

For the year to the end of 2007’s second quarter, annual output in the Scottish service sector grew by 2.8 per cent, compared with a 0.1 per cent increase in the production sector and a 3.5 per cent rise in construction, while in the second quarter of 2007, the service sector grew by 1.0 per cent, the production sector grew by 0.8 per cent and the construction sector grew by 0.2 per cent.

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