THE Scottish onshore economy flatlined for two months in a row, according to official estimates, which also showed a small dip in growth over the last quarter.

Scottish Government statistics published on Wednesday showed the onshore economy, which excludes offshore sectors like oil and gas, was expected to have stagnated with 0.0% growth in June, following on from 0.0% change in May.

Overall, in the second quarter of this year – April to June – the Scottish economy was estimated by official statisticians to have shrunk by 0.3%. This follows on from growth of 0.2% in the first quarter – January to March.

June’s static GDP level was hit by a 1.8% fall in production in Scotland, which the Government said was down to a fall in supply of electricity and gas.

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There was modest growth in the service sector, which accounts for around three quarters of the economy, at 0.3%.

Headline GDP relates to Scotland’s onshore economy, which means it does not include the output of offshore oil and gas extraction.

Wellbeing Economy Secretary Neil Gray blamed the figures on Brexit and the UK Government’s handling of the economy, which has resulted in high interest rates.

In a statement, he said: “The Scottish economy is not alone in facing extremely challenging circumstances.

“The cost of living crisis and higher interest rates are impacting on the ability of households and businesses to spend, which in turn affects the wider economy.

“And Scottish businesses also continue to suffer due to the effect Brexit has had on supply chains, trade and the free movement of people, which has in turn had a significant impact on businesses in terms of staffing.

“Analysis show that independent European nations, similar in size to Scotland, are wealthier and fairer than the UK, and that is the level of ambition this government has for Scotland.

“By focusing on the principles of equality, opportunity and community, an independent Scotland can build a fair, green and growing economy.

“Ultimately, this crisis has been worsened by the UK Government’s handling of the economy. We are doing everything possible with the powers currently available to us to support businesses and transform Scotland’s economy.

“Our New Deal for Business Group to reset the relationship between government and industry, is focusing on co-designing policies that will have a positive impact on the day-to-day operations of business.

“The group’s first set of recommendations have been accepted by the First Minister and we are in the process of implementation.”