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Growth outlook positive

The latest assessment of Scotland’s economic performance has been published in Chief Economist Dr Gary Gillespie’s State of the Economy report. The report contains analysis from the Scottish Government, drawing on a range of recently published statistics, to qualify the impact that London has on various UK economic statistics and compares Scotland’s performance to both the UK total and the UK excluding London.

The report highlights:

  • Independent economic growth forecasts remain positive, projecting growth of around 1% in 2017 and 2018
  • The oil and gas sector has continued to weigh on growth in 2016, though there are emerging signs of confidence returning to the sector
  • Scotland’s labour market has remained resilient with unemployment below the UK figure and falling over the past year
  • Scotland continues to be the most attractive part of the UK, outside London, for foreign direct investment (FDI) and has been for the past 5 years
  • Business sentiment has improved, particularly in the manufacturing sector, though Brexit continues to create substantial uncertainty
  • In the five years since 2010, Scotland’s GDP growth is in line with the UK average and Scotland’s GDP per head growth is above the UK average, when London is excluded.

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