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Scotland officially in recession Scotland officially in recession
(10 minutes later)
The Scottish economy has finally fallen into recession, official figures have confirmed.The Scottish economy has finally fallen into recession, official figures have confirmed.
The figures were published just hours before Chancellor Alistair Darling is due to unveil his crucial Budget at Westminster.The figures were published just hours before Chancellor Alistair Darling is due to unveil his crucial Budget at Westminster.
They showed that Scottish gross domestic product (GDP) had suffered two successive quarters of negative growth.They showed that Scottish gross domestic product (GDP) had suffered two successive quarters of negative growth.
Unemployment in Scotland rose by 5,000 over the last quarter, but remained lower than elsewhere in the UK.Unemployment in Scotland rose by 5,000 over the last quarter, but remained lower than elsewhere in the UK.
Scotland's chief statistician said the country's GDP had fallen by 1.7% in the final quarter of 2008. It followed a fall of 0.8% in the previous quarter.Scotland's chief statistician said the country's GDP had fallen by 1.7% in the final quarter of 2008. It followed a fall of 0.8% in the previous quarter.
The UK as a whole was officially deemed to have entered recession in January after its economy also suffered two successive quarters of negative growth.The UK as a whole was officially deemed to have entered recession in January after its economy also suffered two successive quarters of negative growth.
We know the effect job losses have on families and that is why we are doing everything we can to get real help to people losing their jobs Jim MurphySecretary of State for ScotlandWe know the effect job losses have on families and that is why we are doing everything we can to get real help to people losing their jobs Jim MurphySecretary of State for Scotland
Scottish Finance Secretary John Swinney said the figures highlighted the "scale of the economic challenge we face".Scottish Finance Secretary John Swinney said the figures highlighted the "scale of the economic challenge we face".
He added: "Although our labour market remains substantially stronger than the UK as whole, further figures published today show unemployment is rising.He added: "Although our labour market remains substantially stronger than the UK as whole, further figures published today show unemployment is rising.
"Such circumstances demand swift, decisive action to support jobs and help businesses both survive and emerge stronger when the recovery begins to kick in.""Such circumstances demand swift, decisive action to support jobs and help businesses both survive and emerge stronger when the recovery begins to kick in."
The fall in Scottish GDP was broadly in line with those of several other economies, with the UK, the eurozone and the United States all experiencing a 1.6% drop in the final quarter of 2008.The fall in Scottish GDP was broadly in line with those of several other economies, with the UK, the eurozone and the United States all experiencing a 1.6% drop in the final quarter of 2008.
Output declined more sharply in the export-orientated economies of Germany - by 2.1% - and Japan, which suffered a 3.2% drop.Output declined more sharply in the export-orientated economies of Germany - by 2.1% - and Japan, which suffered a 3.2% drop.
The latest International Labour Organisation (ILO) figures, also published on Wednesday morning, showed the number of people out of work in the three months to February, including those not eligible for benefit, rose by 5,000 to 143,000.The latest International Labour Organisation (ILO) figures, also published on Wednesday morning, showed the number of people out of work in the three months to February, including those not eligible for benefit, rose by 5,000 to 143,000.
Larger riseLarger rise
The number of people claiming jobseeker's allowance saw a larger rise, jumping by 6,000 to 119,400 in the month of March.The number of people claiming jobseeker's allowance saw a larger rise, jumping by 6,000 to 119,400 in the month of March.
This level was an increase of 50,600 on March last year.This level was an increase of 50,600 on March last year.
Secretary of State for Scotland Jim Murphy said rising job losses were the "real effect of damaging global economic conditions", but added that the UK Government was determined to "stop the newly unemployed become the long-term unemployed". Secretary of State for Scotland Jim Murphy said rising job losses were the "real effect of damaging global economic conditions", but added that the UK Government was determined to "stop the newly unemployed becoming the long-term unemployed".
Mr Murphy said: "We know the effect job losses have on families and that is why we are doing everything we can to get real help to people losing their jobs.Mr Murphy said: "We know the effect job losses have on families and that is why we are doing everything we can to get real help to people losing their jobs.
"The government has set out and established a wide range of initiatives to deliver real help to families and businesses. By supporting individuals and stimulating the economy, we are working hard to counteract today's difficult conditions.""The government has set out and established a wide range of initiatives to deliver real help to families and businesses. By supporting individuals and stimulating the economy, we are working hard to counteract today's difficult conditions."