Description:
This indicator measures how well the Scottish economy is growing compared to recent history. It compares Gross Domestic Product (GDP) growth in the most recent year against the average annual GDP growth across the three previous years.
Source of Data:
The data for this indicator are published by the Scottish Government in Scotland’s GDP, second estimate for Quarter 4 (Q4), in late April/early May. Figures for the second estimate of quarter 4 (as well as other quarters/estimates) are available on the Scottish Government website at www.gov.scot/gdp.
Definitions:
Gross Domestic Product: Is a measure of economic output calculated to an internationally-agreed definition and standard. Change in gross domestic product (GDP) is the main indicator of economic growth in Scotland.
Quarter: A quarter is a three month period. Quarter 4 covers the period October to December which means that when data from Quarter 4 is published, data for a full calendar year also becomes available.
Annual Growth rate: The annual growth rate for the most recent year is calculated by taking the average index of the most recent Quarters 1 to 4 (covering January to December of the most recently available year) and calculating the change from the previous four quarters (covering January to December of the previous year).
Average annual 3-year growth rate: an average value for the annual rate of GDP growth over a 3 years which takes into account the compound effect of growth.
Criteria for Change:
Using unrounded data, if the most recent annual growth rate is:
- within +/- 0.1 percentage points of the average annual growth rates for the preceding 3 years then performance is maintaining
- 0.1 percentage points or more higher than the average annual growth rates for the preceding 3 years then the position is improving
- 0.1 percentage points or more lower than the average annual growth rates for the preceding 3 years then the position is worsening