Why is this Purpose target important?
Increasing sustainable economic growth is important if we are to create a more successful country, with opportunities for all of Scotland to flourish. It will help to:
- Counter the effects of the recession
- Create greater and more widely shared employment opportunities
- Promote the transition to a low carbon economy
- Tackle key health and social problems
- Reduce crime and anti-social behaviour
- Foster a climate of entrepreneurialism, international trade and innovation
- Share the benefits of growth across all of Scotland's communities
- Stimulate a virtuous cycle of re-investment in Scotland's public services
- Bring a culture of confidence, creativity and personal empowerment to Scotland
- Secure a high quality environment and a sustainable legacy
What will influence this Purpose target?
The Purpose framework identifies the three key components of faster sustainable economic growth:
- Productivity, Competitiveness and Resource Efficiency
- Participation in the labour market
- Population Growth
It also identifies our desired characteristics of growth - Solidarity, Cohesion, and Sustainability - which are themselves important drivers of sustainable economic growth. Improving the social, health, environmental and economic opportunities for all of Scotland will be key if we are to maximise the nations economic potential.
The Government Economic Strategy sets out how we are making the full use of the economic levers currently devolved to the Scottish Parliament, in order to improve Scotland's sustainable economic growth rate. However, many of the key job creating powers - particularly in relation to taxation and key elements of economic policy - lie outwith the remit of the Scottish Government.
What is the Government's role?
The Government has a vital role in supporting recovery in the economy and in providing the overarching economic framework which is conducive to sustained economic growth in the private sector. The Government Economic Strategy focuses our actions on six Strategic Priorities, which will accelerate recovery, drive sustainable growth and develop a more resilient and adaptable economy:
How are we performing?
For UK Target:
The latest data show that over the year to 2012Q4, GDP in both Scotland and the UK increased by 0.3%. When rounded to one decimal place, this resulted in a gap of 0.1 percentage point in favour of Scotland. This compares to an annual increase in GDP to 2012Q3 of 0.4% in Scotland, and 0.5% in the UK - resulting in a 0.1 percentage point gap in favour of the UK.
Between 2012Q3 and 2012Q4 the gap between annual GDP growth rates in Scotland and the UK improved by 0.2 percentage points in favour of Scotland.
Annual Gross Domestic Product (GDP) growth rates for Scotland and the UK for the purposes of measuring progress against this indicator are published on a rolling four quarter on four quarters basis. The quarterly Scottish GDP publication for 2012Q4 presents annual growth rates calculated by comparing the latest quarter with the same quarter of the previous year. As a result, the Scottish and UK annual GDP growth rates published on Scotland Performs may not be the same as that published in the official Scottish Government GDP Quarterly release.
The data for this chart is available at the bottom of the page
Source: Scottish Government, ONS
For Small EU Countries Target:
The latest data show that over the year to 2012Q4 GDP in Scotland was increased by 0.3% whilst GDP growth in the Small EU remained flat at 0.0%. When rounded to one decimal place, this resulted in a gap of 0.4 percentage points in favour of Scotland. This compares to an annual increase in GDP to 2012Q3 of 0.4% in Scotland, and 0.2% in the Small EU - resulting in a 0.2 percentage point gap in favour of Scotland.
Between 2012Q3 and 2012Q4 the gap in annual GDP growth between Scotland and the Small EU improved by 0.2 percentage points in favour of Scotland.
The small independent EU countries are defined as: Austria, Denmark, Finland, Ireland, Luxembourg, Portugal and Sweden. As with Scotland and the UK, annual Gross Domestic Product (GDP) growth rates for the Small EU Countries, for the purpose of measuring progress against this indicator, are calculated on a rolling four quarters on four quarters basis and therefore the annual Scottish GDP growth rate published on Scotland Performs may differ from that published in the official Scottish Government GDP quarterly release.
The data for this chart is available at the bottom of the page
Source: Scottish Government, OECD
Criteria for recent change
This evaluation is based on: any difference in the gap in annual growth rates within +/- 0.1 percentage points of the last quarter's figure suggests that the position is more likely to be maintaining than showing any change. A movement of 0.1 percentage points or more in Scotland's favour suggests that the position is improving, whereas a movement of 0.1 percentage points or more in the UK or Small EU's favour suggests that the position is worsening.
Further Information
For information on general methodological approach, please click here.
Scotland Performs Technical Note
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