Ms Alexander welcomed the GDP figures

The figures reveal year on year rises in financial services, real estate and business services, chemicals, construction and drink.

However, manufacturing has continued to show a decline across the board.

Ms Alexander said she was pleased by the second quarter boost in Scotland's GDP.

She said: "Despite difficult trading conditions world-wide the Scottish economy has continued to experience growth in a number of sectors.

"The annual figures confirm that raising productivity and growth continues to be a key challenge for the executive."

Job losses

Ms Alexander added: "We remain firmly focused on the aim of raising the sustainable growth rate of the Scottish economy by meeting the new international conditions for economic success."

The minister added that low unemployment and low interest rates should encourage additional investment in the forthcoming months.

However, Scotland's electronics sector has been particularly hard hit in recent months with a stream of job losses.

Some 3,000 jobs were lost at mobile phone firm Motorola's plant in Bathgate, West Lothian, and cuts have also been confirmed by computer giant Compaq, which has shed 700 staff at Erskine, and NEC semiconductors, which laid off 600 in Livingston.

Last month industry leaders announced detailed plans to help the troubled sector.

Manufacturing has suffered across the board

The five-year plan aims to boost the number of skilled workers and make the sector more competitive.

It includes a �5m scheme to retrain 500 employees through modern apprenticeships, which will be financed equally by the industry and the Scottish Enterprise Network.

Scottish Enterprise has also committed more than �30m to electronics over the next two years, including almost �4.3m for reskilling and developing the supply chain.

Ms Alexander said: "Scotland cannot be immune from the global restructuring affecting the electronics sector and Scottish manufacturing output figures have been significantly affected by these events.

'Self congratulatory mince'

"The industry, with support and additional investment from Scottish Enterprise and the Executive, is responding positively.

She added: "The recently launched Electronics Action Plan focuses on building Scotland's capacity in high-value manufacturing and product development, in order to secure the long-term future of the sector."

Kenny MacAskill, the SNP's enterprise spokesman, was scathing of the figures and called for urgent government intervention to ease the situation.

He said: "What the manufacturing industry in Scotland needs from the government is action and positive policies to deal with the slump.

"All we have had so far however is a press statement that is basically full of self congratulatory mince and totally ignores the crisis in manufacturing."