KATE Forbes has said she remains "deeply concerned" about the impact of the UK Budget as new figures showed the Scotland's monthly GDP grew by 0.6% in December.
She added that the country's economy is forecast "to strengthen further," despite policies from Westminster which will have "damaging consequences" for businesses.
Forbes pointed to rising energy costs and the potential impact of the increase in National Insurance employer contributions.
The newly released figures show Scotland’s GDP grew by 1.1% in 2024 compared to 2023.
Scotland's GDP also increased 0.4% in the previous quarter, between July and September.
However, in the three months to December – 2024 quarter four – GDP is estimated to have remained flat, with 0.0% change compared to the previous three-month period.
Deputy First Minister Forbes said that the "figures are encouraging," and highlighted the recent £25 million in funding announced by First Minister John Swinney for Grangemouth, stating it showed Scotland's "focus on driving growth and investment".
Forbes said: “These figures are encouraging, showing a 0.6% increase for December and an overall growth of 1.1% in Scotland’s economy over the past year, which is forecast to strengthen further.
“With a focus on driving growth and investment, our draft budget for 2025-26 almost triples capital investment in the offshore wind supply chain to £150 million and provides funding to grow businesses at home and abroad. In addition, the First Minister has recently announced a £25 million Just Transition Fund to support the future of the Grangemouth industrial cluster.
“However, many levers to grow our economy lie with the UK Government and we remain deeply concerned by the cost of living crisis, rising energy costs and the potential impact of the increase in National Insurance employer contributions in the UK Budget which will have damaging consequences for businesses.”
GDP growth relates to Scotland’s onshore economy, which means it does not include the output of offshore oil and gas extraction.
In December, output in the services sector is estimated to have grown by 0.3%, while the production sector output grew by 2.3% in December.
Construction sector output contracted by 0.2% in December.
It comes as the Bank of England reduced its growth forecast for 2025, predicting that UK GDP will rise by 0.75%, half of its previous projection.
The Scottish economy, as well as the UK as a whole, have seen relatively little GDP growth since the start of 2022.
