SCOTLAND’S economy is continuing to lag behind the rest of the UK, with growth remaining “fragile and below trend”.

Figures show the Scottish economy grew by 0.2 per cent in the third quarter of last year – below the UK rate of 0.4 per cent.

In standard of living terms, Scotland has now experienced 10 quarters without growth compared to a rise of three per cent for the UK over the same period.

Manufacturing has fallen by 2.5 per cent over the last two years, while construction has plummeted by more than 12 per cent from its peak two years ago.

Professor Graeme Roy, director of the Fraser of Allander Institute, said the figures show the Scottish economy continued to grow, but added: “However, as expected growth remains fragile and below trend.”

He added: “Annual growth in the Scottish economy of a mere 0.6 per cent over the year to quarter three of 2017 is disappointing. Prior to the financial crisis, average yearly growth had typically been greater than 2per cent.

“The figures once again highlight divergence in performance across industries in Scotland. Whilst services and production grew – the latter driven by strong growth in electricity production – construction output fell for the seventh consecutive quarter.”

Economy Secretary Keith Brown said the figures demonstrated resilience in the face of Brexit uncertainty.

He said: “Our determination to seize opportunity and grow our economy is demonstrated by the £270 million increase on economic spending we announced in the 2018/19 Draft Budget.

“However it cannot be stressed enough that the single biggest threat to our economy as a whole remains the lack of clarity from the UK Government over Brexit.

“This week the Scottish Government published analysis which showed that failure to remain in the single market or secure a free trade agreement would see Scotland’s GDP around £12.7 billion lower by 2030 than it would be under continued EU membership.”

Scottish Conservative economy spokesman Dean Lockhart said failure to match the performance of the UK economy as a whole between 2007, when the SNP came to power, and 2022 will amount to a growth gap for Scotland of £16.5 billion in cash terms.