Quarterly GDP remains below pre-pandemic levels, according to figures released by the Scottish Government.
Statistics released on Wednesday show the economy grew by 0.2% in the final quarter of last year, but remains 0.4% below the same period in 2019, just before the impacts of Covid-19 began to take hold.
The publication said: “In quarterly terms, the level of GDP is 0.4% below the level in 2019 quarter four, prior to the impacts of the coronavirus pandemic, after an initial fall of 24.5% between 2019 quarter four and 2020 quarter two.”
The increase in the final quarter of last year was driven by growth of 0.2% in the services sector, 0.1% in the production sector and 1% in construction.
The household saving ratio – a measure of funds available to individuals to be added to savings, including pension funds, and to pay off debts – increased from 7.6% to 7.8% between the third and fourth quarters of last year, despite a 9.2% increase in customer expenditure last year.
While disposable outcome, the figures show, grew by just 6% in 2022, savings were “boosted by very high levels of the adjustment for the change in pension entitlements, because of high gilt yields in the second half of 2022 and their impact on pension funds”.
The figures, however, showed the economy – minus oil and gas revenues – increased by 11% in cash terms in 2022 compared with the previous year, totalling 4.9% when adjusted for inflation.
The economy totalled £187.3 billion in 2022, equivalent to £34,229 per person in Scotland and an increase of £18.5 billion.
When oil and gas extraction in Scottish waters is included, GDP increases to £210.7 billion in 2022, equivalent to £38,509 per person.
The Scottish Government also released estimates of more recent economic measures, showing GDP growth of 0.2% in February.
Scottish Secretary Alister Jack said: “The economic outlook is looking brighter than expected and, due to the swift action of this government, we are set to avoid recession .
“We are focussed on halving inflation, reducing debt and growing the economy - that includes the UK Government investing more than £2.2bn across Scotland to create jobs and opportunities, and boost trade and investment.”
Wellbeing Economy Secretary Neil Gray said the figures show the “resilience” of Scotland’s economy despite the “extremely challenging circumstances faced by countries around the world”.
Gray went on to criticise the UK Government’s handling of the wider economy, citing Brexit’s impact on supply chains and staffing levels, adding: “Ultimately, this crisis has been worsened by the UK Government’s handling of the UK economy, which the IMF forecasts to be the worst performing in the G20 this year.
“We continue to urge Westminster to do everything it can to tackle this crisis on the scale required.”
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