The fall in oil prices has contributed to a slowdown in the growth of Scotland’s economy, the country’s chief economist has reported.
The economy grew by just 0.1% in the second quarter of 2015, down from 0.4% in the first quarter. Overall growth in Scotland remains forecast at 1.9% for 2015, down on 2014 figures.
In his latest state of the economy report, Dr Gary Gillespie said that despite having a positive impact on many sectors of the economy, the fall in the price of oil has impacted negatively on the oil and gas sector in Scotland.
The slowdown is also attributed to the more muted global economy, which has affected export activity, particularly in manufacturing.
Dr Gillespie said growth in the second quarter of the year was driven mostly by household spending and investment.
Meanwhile, the construction sector has been supported by a surge in public-sector investment through 2015, driving growth in this area.
The chief economist also reported the labour market has remained resilient and is now performing close to pre-recession averages.
Deputy First Minister John Swinney said: “Today’s state of the economy report shows that Scotland’s economy has remained resilient even in the face of increased global headwinds – continuing the longest period of continuous quarterly growth in the Scottish economy since 2001.
“Recent data has shown that Scotland’s economy has been performing well over recent years, with output and employment above their pre-crisis levels.
“Our economy, however, is facing a number of external challenges and the pace of growth has, therefore, slowed during the second quarter of the year.
“The UK Government retains control of the main economic and tax levers affecting the North Sea oil industry and we urge them to do all they can to assist the sector.
“Our prioritisation of public infrastructure spending throughout 2015 has also been a strong contributor to growth in Scotland during this period.”
Recommended for you
