Scottish GDP fell by 0.2 per cent in the third quarter of 2009 and 4.6% over the year.

But the rate of decline has eased since the first and second quarters of last year, with some sectors - such as production and manufacturing - reporting a return to growth.

Finance Secretary John Swinney said: "Growth in the production sector coincided with an increase in Scottish manufactured exports.

"While this is welcome news, the challenge now is to get all sectors of our economy moving and lift Scotland out of recession.

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"Our Economic Recovery Plan continues to have a central role in coordinating our response to the downturn. We are absolutely committed to investing in jobs and keeping our economy moving in these tough times.

"Today's figures highlight the importance of the Scottish Government's 2010-11 budget bill. We are maintaining substantial investment of two billion pounds in higher and further education and skills, including in modern apprenticeships, and providing a significant package of support for small businesses."

Mr Swinney added that it is vital that Parliament engages positively in the budget process, which will be debated for the first time today.

"We must achieve consensus and deliver a budget in the best interests of Scotland and economic recovery," he concluded.

(GK/BMcc)