Scottish economic output slumped in December

Output from the Scottish economy contracted during December at twice the rate of the UK figure, new data shows.

Scottish government economists calculate that output was down by 0.4%, while the Office for National Statistics says the UK economy contracted by 0.2%.

December was when new restrictions on hospitality were introduced because of the Covid's Omicron variant.

For all of 2021, Scotland's Gross Domestic Product (GDP) rose by 7%.

This followed a 10% drop in output during 2020, the first year of the Covid pandemic.

That was similar to the pattern for the UK as a whole but the fall was less steep, down 9.2% in 2020, and the recovery was faster, up 7.3%.

The final three months of last year saw a rise in UK GDP of an estimated 1%, while in Scotland, there was a stronger final quarter, growing by 1.3%.

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The Scottish and UK figures are very close to the level of GDP reached just ahead of the pandemic forcing a shutdown of many businesses, nearly two years ago.

Restaurants, pubs and hotels in Scotland saw a sharp decline in activity during December.

Consumer-facing services were down by 2.5% during the month, and manufacturing was also down.

Construction output was up, and stronger winds than in summer months increased the value of energy supply. The electricity and gas sector rebounded with 7.8% growth in the final quarter of 2021.

'Recovery remains fragile'

The December figures are classified as "experimental", meaning they do not meet all the requirements for official statistics.

Kate Forbes, cabinet secretary for finance and the economy, said: "December was a difficult time for many, which is reflected in these figures.

"However, the resilience and ingenuity of our business community has lessened the impact, and it is encouraging to see sectors such as construction continue to grow.

"While we know our recovery remains fragile, and that many businesses have had an incredibly challenging time over the last two years, the Scottish government is firmly focused on supporting our economy to recover."