GDP fell 0.6% in final quarter of 2023 but Scotland not officially in recession

GDP in Scotland fell by twice as much as it did in the UK in the final three months of last year, official figures show.

But Scotland has not yet gone into recession, according to the data, despite the economy shrinking by 0.6% over the period October to December.

In the UK as a whole, GDP fell 0.3% over the same period – putting the country into recession as it was the second consecutive quarter of negative economic growth.

In Scotland, the fall of 0.6% came after growth of 0.4% between July and September, meaning there have not been two consecutive quarters where GDP has fallen – which defines a recession.

A Scottish Government report said: “In 2023 quarter four (October to December), Scotland’s GDP fell by 0.6% in real-terms compared to quarter three, following growth of 0.4% in quarter three.

“Over quarter four, GDP for the UK as a whole fell by 0.3%.”

The data shows that in the final three months of 2023, the services sector, which makes up the bulk of Scotland’s economy, decreased by 0.1%.