Meeting of the Parliament 08 January 2014
I welcome this opportunity to update the Parliament on the Scottish economy and to lead this debate on the opportunities for strengthening our long-term growth prospects: 2014 promises to be an important year for the Scottish economy. There are clear signs that the recovery is beginning to gather momentum with the most stable, if not the most universally positive, outlook for the global economy since the financial crisis. The year 2014 is also when the eyes of the world will be on Scotland. Events such as homecoming, the Commonwealth games and the Ryder cup will provide a once-in-a-lifetime opportunity to showcase our nation to a global audience and to use that to maximise the benefits to our economy. In addition, of course, in September of this year the people of Scotland will have the chance to decide who is best placed to look after Scotland’s economy in the future and to generate greater economic prosperity and equality through a vote for Scottish independence.
Last month, the Scottish Government’s chief economist published the latest state of the economy report, which documented the relatively positive signs of economic recovery over the past year. Over the year to quarter 2 2013, the Scottish economy grew in each and every quarter. We continue to make progress from the financial crisis, with output in Scotland in quarter 2 now 1.4 per cent below its pre-recession peak and with the United Kingdom in the same quarter 2.7 per cent below pre-recession peak. The labour market has also strengthened over the year; the latest statistics show employment levels in Scotland increasing by 83,000 over the year to August to October 2013 and we still outperform the UK on all the labour market indicators that we observe.
Core business surveys for Scotland, such as the purchasing managers index, report that private sector output continued to expand through the two final quarters of 2013, and confidence is gradually returning to the business sector in Scotland. That is testament to the inherent strength of the Scottish economy and to the measures that have been taken to ensure that the investment that the Scottish Government has at its disposal is used as effectively as possible to support and encourage the growth of the Scottish economy in such difficult circumstances.