Commenting on the latest GDP data for Scotland, Laurie Macfarlane, Co-Director of Future Economy Scotland, said:

“In the last quarter of 2023, Scotland’s economy shrunk by 0.6%, leaving Scotland at risk of falling into recession. Over the course of 2023 Scotland’s economy grew by just 0.2% – the weakest year since 2009, excluding in 2020 during the Covid-19 pandemic.

“The data reflects growing pressure on household budgets, as higher prices and interest rates have squeezed living standards. This has been compounded by the legacy of the Covid-19 pandemic, which continues to impact many sectors of Scotland’s economy. Average real earnings remain lower today than they were in 2008, meaning the average worker in Scotland earns less today than they did 16 years ago.

“Underpinning Scotland’s weak economy lies longstanding weaknesses in our economic model, particularly chronically low investment. If Scotland is to avoid recession, the Scottish Government must embrace bold new ideas to transform the economy – prioritising seizing the opportunities associated with Scotland’s just transition to net zero.”

ENDS

NOTES TO EDITORS 

[1] On 28 February the Scottish Government published its first quarterly estimate of GDP for 2023 Q4 (October to December). As this data is a first estimate, it may be subject to revisions over time. 

[2] Future Economy Scotland is a non-partisan think tank that aims to create a new economy that is democratic, sustainable and just. The organisation does not have a formal stance on Scotland’s constitutional future, and is not aligned to any political party or any politician. The organisation is a not-for-profit company limited by guarantee operating with charitable principles. For more information, visit: www.futureeconomy.scot

[3] To book an interview with a spokesperson, or for any other questions, please contact press@futureeconomy.scot or call 07909107890.