Economy Secretary Fiona Hyslop has said coronavirus "combined with the huge economic uncertainty caused by Brexit" are impacting employment and commerce in Scotland.

Ms Hyslop said that "this remains an extremely tumultuous time for the economy and jobs" as new figures showed Scotland's economy shrank in December.

Provisional statistics released by the Scottish Government on Wednesday show a 0.3% fall in gross domestic product (GDP), when compared to November.

The level system of restrictions was put in place in early November, shaving 1.5% off GDP during that month.

While the contraction appears to have continued into December, the Scottish Government was forced to place mainland Scotland into lockdown from Boxing Day, which forced all non-essential retail and hospitality to close.

READ MORE: Scottish agritourism dismayed by lockdown exit plan

GDP now sits at 7.2% below last February, the last period not impacted by some level of coronavirus restrictions.

Over the final quarter of last year, Scotland's economy actually grew by 1.6%, a significant drop from the 15.8% increase in the third quarter.

Ms Hyslop said: "Our economy has been badly hit by the coronavirus pandemic.

"Both Scotland and UK have seen record falls in GDP over 2020 but that is not surprising as large parts of the economy were required to close to protect lives.

"The most recent data shows Scotland's economy increased by 1.6% in the final quarter of last year, compared to 1.0% across the UK.

"However, combined with the huge economic uncertainty caused by Brexit, this remains an extremely tumultuous time for the economy and jobs.

"We will continue to press the UK Government to ensure key support packages, such as the furlough scheme and VAT relief, are kept in place for as long as is needed."

She added: "We are using all the powers we have to rebuild a stronger, more resilient and sustainable economy for Scotland, with a laser focus on creating new, good, green jobs."

The Herald: Standard Life brand sold in 'complex' deal.Standard Life brand sold in 'complex' deal.

Standard Life brand sold as new chief makes mark on Scottish finance giant

Standard Life Aberdeen is selling the brand with which the group and forerunners have been associated for almost 200 years as the group increases its focus on asset management.

READ MORE: The Edinburgh-based giant has agreed to sell the Standard Life brand to the Phoenix group during this year as part of a complex deal. Phoenix said this will result in Standard Life Aberdeen (SLA) paying it £115 million cash.

The Herald: Stuart Patrick, chief executive of Glasgow Chamber of Commerce Stuart Patrick, chief executive of Glasgow Chamber of Commerce

Stuart Patrick: Statements could galvanise firms for final push

Is it too optimistic to suggest businesses can finally plan for an end to the crisis? Since the start of the year by far the most persistent request I was hearing from Chamber members was for our political leadership to provide an indicative exit road map.

READ MORE: For businesses, and especially smaller businesses, struggling to manage dwindling financial reserves, the ability to negotiate with banks or other funding sources has been very difficult without some sense of an end game.

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