SFE responds to latest Scottish GDP figures

Figures from the Scottish Government show that Scotland’s economy is estimated to have shrunk by 0.3% in February, with GDP contracting in the second month of 2024.

Despite a small rise in January, the economy is now said to have fallen by 0.5 per cent over the last three months of 2023.

The figures underscore the critical need for government to commit to a laser sharp focus on growth, tackling structural issues like skills gaps and productivity, and driving high value job creation.

Scotland’s economy is immensely resilient and there are many reasons to be optimistic. However, we need to fundamentally challenge the current policy approach on areas like tax divergence, higher education funding and our approach to devolved regulation, which have been detrimental to delivering higher growth.

Now is the time to chart a new approach to policymaking which reinvigorates business engagement, provides much needed confidence to our business community and sets out a path for long-term sustainable growth, putting our largest value adding sectors front and centre.

As the SNP begins its search for a new first minister, our message to all politicians is that Scotland’s financial services industry is ready to be a constructive partner on our shared ambitions.

Our sector growth strategy outlines our potential to add between £4bn - £7bn GVA to the Scottish economy over the next five years. We have all the ingredients to be the engine of growth in the Scottish economy and we are determined to play our part in creating a stronger, greener and fairer Scottish economy for generations to come.