Scotland’s onshore GDP contracted by 0.2% in February, the latest statistics show.
It follows a growth of 0.4% in January, which was revised up from 0.3% in the latest figures.
In the three months to February, GDP is estimated to have grown by 0.7% compared to the previous quarter.
The largest negative contribution in February was in the “information and communications” sector of the economy, which shrunk by 3.5%.
Deputy First Minister Kate Forbes said: “Global economic uncertainty has been rising but I am encouraged to see growth of 0.7% in the three months to February.
“Despite limited devolved powers, our forthcoming Programme for Government will face up to the very different economic landscape and take all the steps we can to improve the position of Scotland to draw in new investment and create jobs.
“However it is clear that a co-ordinated response is required and we need to see bold and decisive action from the UK Government at a scale which reflects the economic uncertainty being felt by business, workers and families – including the reversal of its damaging decision to increase employers’ national insurance contributions.”
Responding on behalf of the UK Government, Scottish Secretary Ian Murray said: “Our Plan for Change is delivering security and renewal by kick-starting economic growth and creating well-paid jobs to put more money in people’s pockets.
“Our measures to get Britain working coupled with the landmark Employment Rights Bill have brought an annual pay rise of around £1,400 for more than 220,000 Scottish workers, and we’ve increased job security too, ending exploitative zero-hours contracts for nearly 80,000 Scottish workers.
“Restoring stability is key. The Scottish Government is receiving a record £47.7billion in 25/26 to fund public services, like our NHS.
“We’re investing a further £1.4 billion in local growth projects over the next 10 years, our National Wealth Fund will support clean energy and business expansion. and our forthcoming industrial strategy will herald a new era of growth and create opportunities for people in Scotland and all across the UK.”
