Scotland’s GDP fell by 0.8% in June, figures show

cotland’s onshore GDP fell by 0.8% in June, government estimates show.

Output had risen by 0.6% between April and May before the most recent downturn, leaving GDP 0.4% higher overall compared with the pre-pandemic level in February 2020.

The services sector experienced no growth in June, according to the latest figures, while customer-facing services output fell by 0.6% and health, education and public services fell by 0.3%. All other sectors saw growth of 0.4%.

Compared with the previous month, output in the production, construction and agriculture sector fell by 3.1%.

Meanwhile, the Scottish Government estimated GDP did not grow at all in the second quarter of 2022, between April and June.

The government described the change between the first and second quarter of this year – falling from 1% growth to 0% – as a “sharp slowdown”.

The main reason for the downturn was given as a fall in health and social care work activity as a result of the end of the test, trace and vaccine programmes related to the coronavirus pandemic.

Scottish Secretary Alister Jack said: “We are facing unprecedented global challenges, but our economy showed huge resilience emerging from the pandemic and I feel sure we will come through these uncertain times too.

“Supporting families and businesses is our priority. A quarter of all UK households will receive £1,200 of direct help as part of our £37 billion package to assist the most vulnerable with the first cost-of-living payments already paid out to over seven million people.

“Our steps to support businesses include slashing fuel duty, reducing employer national insurance and freezing alcohol duty which helps pubs and our hospitality industry.

“All this is in addition to the Scottish Government receiving a record £41 billion per year settlement for the next three years.”