FINANCE and Economy Secretary Kate Forbes has hailed the “strength and resilience” of Scotland’s economic sector as the latest GDP figures showed a growth of 0.4 per cent in February.

Monthly data showed the country’s economy was 1.3% above the level it was in February 2020, before the start of the coronavirus pandemic.

The statistics from the Scottish Government showed that the service sector, which accounts for around three-quarters of the economy, grew by 0.7% in February.

Output in consumer-facing services grew by 2.1%, while health, education and public services saw a fall of 1.2%.

The production sector saw an increase of 0.3% over the month, while construction sector output fell by 0.1%.

The figures indicated a “slight slowdown” in growth for the first quarter so far, with GDP estimated to have grown by 1.1% in the three months to February after an increase of 1.3% in the fourth quarter of 2021.

Ms Forbes said the figures were “encouraging”, but she warned that Scotland’s recovery from the impact of Covid “remains fragile”.

She Forbes said: “As we continue to recover from the impacts of the pandemic, growth of 0.4% in February shows the strength and resilience of Scotland’s businesses and our wider economy, driven by increasing output in professional, scientific and technical services, as well as in accommodation and food services.

“It is encouraging to see monthly GDP is now 1.3% above the pre-pandemic level of February 2020.

“While our recovery remains fragile and we continue to face challenges from EU exit, the rising cost of living and the impacts of Russia’s illegal invasion of Ukraine, the Scottish Government is firmly focused on supporting our economy to recover.

“Since the start of the pandemic, businesses have benefitted from more than £4.5 billion of support, including around £1.6 billion in rates relief.

“The National Strategy for Economic Transformation is fundamental to building on our progress, growing our economy and supporting our transition to a greener, fairer and more prosperous Scotland.”

UK Government Scottish Secretary Alister Jack said it was important to recognise "the new global challenges our economy faces, including from the war in Ukraine".

The Herald: Scottish Secretary Alister JackScottish Secretary Alister Jack (Image: Gerry)

He added:“Our priority remains on a strong and steady recovery and we are helping to tackle the rising cost of living.

“We’ve introduced a package of measures worth £22 billion this financial year. That includes boosting take-home pay by raising the National Insurance threshold and ploughing £9.1 billion into our energy support package -  with £290 million in Barnett consequentials funding council tax rebates in Scotland. That's in addition to the record £41 billion per year funding settlement for the Scottish Government for next three years.

“We can, and will, level up all areas of the UK and build back better from these troubled times.”