We have a new website go to gov.scot

Statistics Publications Notice for Scottish Gross Dometic Product 2005Q4

DescriptionGross Domestic Product for Scotland 2005 Q4
Official Print Publication Date
Website Publication DateApril 26, 2006


26 April 2006

A Scottish Executive National Statistics Publication

NEXT PUBLISHED (Provisionally): 26 th July 2006

This document is also available in pdf format (150k)


A Scottish Executive National Statistics Publication

Gross Domestic Product in Scotland rose by 1.8 per cent over the year 2005 and grew by 0.6 per cent during the fourth quarter of 2005 according to provisional estimates released today by the Scottish Executive.

The main findings of the latest figures are:

  • GDP rose by 1.8 per cent over the year 2005 and grew by 0.6 per cent over the fourth quarter of 2005 (seasonally adjusted).
  • Over the year 2005, annual output in the Scottish service sector grew by 2.8 per cent, compared with a 2.0 per cent decrease in the production sector and a 1.3 per cent rise in construction.
  • In the fourth quarter of 2005, the service sector grew by 0.7 per cent, the construction sector rose by 2.1 per cent and the production sector remained constant.

UK Figures:

  • The UK figures show that GDP rose by 1.8 per cent over the year 2005 and by 0.6 per cent over the latest quarter.
  • Over the year 2005, the UK experienced a 2.8 per cent growth in services, a 1.9 per cent decline in production and 1.1 per cent growth in construction.

Industry Analysis:

  • Over the latest quarter, the service sector grew by 0.7 per cent. Within this sector the other services (3.2%) sector was the main driver of the quarterly increase, followed by transport, storage & communication (1.6%), real estate and business services (0.6%) and financial services (0.7).
  • Output in the production sector remained constant over the quarter. Within production, the mining & quarrying (-3.9%) and manufacturing (-0.2%) industries both saw a decline. This was offset by growth in the electricity, gas and water supply sector (2.9%).
  • Within manufacturing the main sectors driving the quarterly decrease were other manufacturing (-1.8%) and engineering and allied industries (-1.1%). Textiles (-3.8%) also contributed to the fall over the quarter.

List of Tables

Table 1: Gross Value Added chained volume measures at basic prices, by category of output
Table 2: Gross Value Added chained volume measures at basic prices, by category of ouput

Table 3: Gross Value Added chained volume measures at basic prices: service industries

Table 4: Gross Value Added chained volume measures at basic prices: detailed service industries

Table 5: Gross Value Added chained volume measures at basic prices: production industries

Table 6: Gross Value Added chained volume measures at basic prices: detailed production industries

Table 7: Gross Value Added chained volume measures at basic prices by category of output

Table 8: Revisions to data published on 25 January 2006 (Table 2)

Table 9: Revisions to data published on 25 January 2006 (Table 3)

Table 10: Revisions to data published on 25 January 2006 (Table 4)

Table 11: Revisions to data published on 26 January 2006 (Table 5)

Table 12: Revisions to data published on 25 January 2006 (Table 6)

Table 13: Revisions to data published on 25 January 2006 (Table 7)



1. Gross Domestic Product ( GDP) is a measure of the value of goods and services produced by residents, before allowing for depreciation or capital consumption. Net receipts from interest, profits and dividends abroad are excluded. The estimates produced in this publication measure GDP at basic prices (also referred to as gross value added ( GVA)).


2. In February 2004, on publication of results for 2003 Q3, the Scottish GDP estimates moved to annually weighted and chained estimates of volume measures - referred to as "annual chainlinking" - as recommended in the System of National Accounts 1993. This is consistent with the UK where this approach was introduced on 30 September 2003 in respect of the 2003 Q2 results. Annual chainlinking is achieved by producing a weighted average of over 260 separate indices (160 of which are in the production sector). The indices represent changes in the value added, at constant prices, in the production of goods and services in individual industries. These industries are compiled using the standard industrial classification SIC2003.

3. The main difference between chainlinking and the previous "fixed base" methodology is that the weights applied to each industry (reflecting their importance to the Scottish economy) are updated on an annual basis, instead of a 5-yearly basis. The major effect of chainlinking has been to more accurately reflect the changing importance of sectors. The weights were updated to 2002 in October 2005 in line with the annual chainlinking methodology. Examined in isolation, the effect of applying the new weights to the overall GDP index was negligible. There was a slight negative effect on production and construction growth rates and almost no effect upon services with the result of a very slight reduction in overall GDP growth from 2002 onward. An article providing more information about the chainlinking methodology was published in Scottish Economic Statistics 2004 available at www.scotland.gov.uk/stats/ses.


4. Series are derived from indicators based on data from a wide range of sources. Examples include: deflated turnover, deflated production, the volume of a good or service sold or produced and, for some parts of the public sector, employee numbers.

5. The quarterly Scottish GDP estimates are published within 4 months (approximately 17 weeks) of the end of the quarter to which they relate.

6. The indices published within this Statistics Publication Notice are grouped according to the 2003 revised Standard Industrial Classification. The four broad groupings of industries are

(a) agriculture, hunting, forestry and fishing

(b) production which comprises: mining and quarrying industries; energy and water supply; and manufacturing, which includes: refined petroleum products and nuclear fuel; chemical and man-made fibres; metal and metal products; engineering and allied industries; food, drink and tobacco industries; textiles, footwear, leather and clothing; other manufacturing.

(c) construction

(d) services, which includes: retail and wholesale; hotels and catering; transport, storage and communication; financial services; real estate and business services; public administration, education and health; other services.

7. Scottish GDP estimates will generally be less reliable than the estimates for the UK, primarily because the equivalent UK figures are produced by balancing 3 independent sets of estimates (Output ( GVA), Income & Expenditure-based approaches). Furthermore, the survey data tend to be based on smaller numbers of units, making figures for Scotland more likely to be subject to small random fluctuations.

Cash Estimates of GVA

8. Estimates of the cash value of gross value added ( GVA) at current prices for Scotland (and other regions of the UK) are produced by the Office for National Statistics. Estimates for 2004 were published on 21st December 2005. The ONS current price value estimates are methodologically different from the Scottish Executive volume (constant price) index and are based on different data sources.


9. The figures in this Statistics Publication Notice incorporate revisions to previously published estimates. These are mainly due to revisions to input data and adjustments to seasonal factors. Tables 8 - 13 identify the extent of revisions since the last publication in January 2005. Revisions are shown to one decimal place for total GVA and GVA excluding oil & gas and to zero decimal places for all other sectors.

Revisions are minimal this quarter, however the series most affected are:

  • Chemicals - due to revised input data for a single company going back to 2001; revisions before this are due to changes in the base year - not to revised data for earlier periods;
  • Agriculture, hunting, forestry and fishing - due to updated input data for Agriculture and the inclusion of previously undeclared landings into recent estimates for Sea fishing.
  • Retail, Wholesale, Hotels and catering, Financial services and Business services - due to revised input data for recent quarters.

National Statistics

10. National Statistics are produced to high professional standards set out in the National Statistics Code of Practice. They undergo regular quality assurance reviews to ensure that they meet customer needs. They are produced free from any political interference.

11. Detailed results for all industries are available to download from the Scottish Executive website www.scotland.gov.uk/gdp.

Issued by

Office of the Chief Economic Adviser

Office of the Permanent Secretary

St Andrew's House

Regent Road

Edinburgh, EH1 3DG


Press Office: Claire Delaney 0141-244-2547

Statistician: Andrew Mortimer 0131-244-3771