THE UK's economy is lagging behind smaller independent nations such as Austria, Ireland, Norway and Denmark, the SNP says.

Scotland's GDP would surge if Holyrood had the same powers as parliaments in other small independent countries, the party said.

The SNP highlighted analysis published by the independent Scottish Parliament Information Centre (SPICE).

Figures from SPICE researchers showed Scottish GDP could match countries such as Austria, Ireland, Norway and Denmark, the SNP said.

Matching Irish growth over the same period would result in a £30 billion economic boom, while keeping pace with Norway would boost Scotland’s economy by up to £12 billion – with a £10.4 billion increase by matching Denmark, and £9.7 billion by matching Austria, the party claimed.

The findings were published after the SNP's Growth Commission stated that small independent countries have consistently outperformed larger economies by 0.7 per cent on average.

SNP MSP Ivan McKee said the SPICE research backed up the commission's findings.

He said: “This new independent analysis is incredibly revealing – it is clearer than ever that Westminster is holding back Scotland’s economic potential.

“Just by matching the modest growth forecasts of small independent countries such as Norway, Denmark and Austria, Scotland could receive a significantly greater economic boost compared to continuing to follow the UK’s failed London centric economic model.

“Scotland must show the ambition and innovation that other independent countries have if we are to catch up with them and grow our own economy – and the Sustainable Growth Commission’s report makes a clear case for how we can achieve this over the coming decades.

“It is increasingly clear that only with the powers of independence can Scotland do what is needed to boost our economy, improve living standards and create the kind of nation we all want to live in.”

However, Scottish Labour's economy spokeswoman Jackie Baillie blasted the SNP's blueprint for the economy as a recipe for continued austerity.

Baillie said: “Under the SNP, growth is struggling behind the rest of the UK and other small European countries, wages are stagnant and productivity is flat lining.

“This month’s Institute for Fiscal Studies report delivered a damming critique of the Nationalists’ blueprint for separation and confirmed that the SNP’s cuts commission would mean a ‘continuation of austerity’.

"It is increasingly clear that the SNP government remains in denial about its mismanagement of our economy and is also content simply to try and blame Westminster for all of Scotland’s economic woes.

“That is simply not good enough.

“In contrast, Labour’s plans would mean a decade of investment for Scotland.

"We are the only party with an industrial strategy that sets out a plan to create decent jobs and grow the economy so it works for the many, not the few.”

Scottish Conservative finance spokesman Murdo Fraser added: “This is the utter nonsense we’ve come to expect from the SNP.

“As we know from their own blueprint for independence, a separate Scotland would be forced to instigate austerity max just to get the economy on an even keel.

“And under their stewardship the Scottish economy has continued to lag behind the rest of the UK.

“Holyrood already has a number of levers at their disposal to grow the economy – the fact is that this SNP Government is not using them.”