The economy has gone into reverse as the impact of Brexit stockpiling is felt across Britain.
Figures yesterday showed GDP shrank between April and June by 0.3 per cent in Scotland and 0.2 per cent across the UK.
Experts said growth at the start of the year was inflated by firms building up stock before the UK leaves the EU.
As the leaving date was pushed back, companies reining in their spending had a knock-on effect.
Professor Graeme Roy, of the Fraser of Allander Institute in Glasgow, said: “The data today confirms that, like the UK as a whole, the Scottish economy contracted in the second quarter of 2019.
“Economic activity has proven particularly volatile this year as Brexit uncertainty has affected the pattern of business activity.”
The fall follows a 0.6 per cent increase in Scots GDP between January and March.
Over the year, the Scottish economy grew by 0.7 per cent – which is below the average long-term growth rate.
Scotland’s economy secretary Derek Mackay said the UK Government’s handling of Brexit is to blame.
He said: “The responsibility for this contraction lies entirely with the UK Government.”
But Scots Tory economy spokesman Dean Lockhart said: “When Scotland’s economy grew, all the SNP cared about was trumpeting its own record.
"Yet when Scottish businesses need assurances and explanations the most, they run for cover.”
