A rebound in the North Sea's fortunes should support stronger economic growth in Scotland this year and beyond, the country's chief economist has said.

However, he added uncertainty over Brexit continues to impact on business confidence and investment and remains a key risk to growth.

The Scottish Government's chief economic adviser Dr Gary Gillepsie published his annual report into the state of the economy on Friday.

In it, he confirmed Scotland's economy had strengthened in 2017 and has continued to do so this year, highlighting improved labour market figures and output growth.

Figures published this week showed GDP was up 0.2% over January to March, compared to 0.1% for the UK as a whole.

Independent forecasts signal positive GDP growth for 2018 of between 0.7% and 1.3% rising to between 0.8% and 1.6% in 2019, however this lags well behind global forecasts of about 4%.

Gillespie stated the North Sea oil and gas industry had enjoyed a boost in "output, profitability and confidence" after a "difficult" three years, with production on the rise.

His report added: "Similarly, growth in services remains close to trend, reflecting the strong labour market in Scotland, which has seen unemployment remain close to record lows at just over 4% and employment growth and inactivity both continuing to strengthen."

But he said the construction industry in Scotland had continued to contract in the first three months of the new financial year - the "latest in a series of quarterly declines".

Adverse weather such as the 'beast from the east' earlier this year was a factor in the industry's drop in output, but Gillespie cited recent construction firm closures as a sign difficulties remain.

The economist further raised the potential impact of Brexit on investment plans.

There is the possibility of "increased volatility in economic data" as companies uncertain about post-exit transition plans may bring forward activities like stock purchases to hedge against disruption to supply lines.

However, Gillespie also pointed out the possible benefits of lower migration due to Brexit on the labour market, with "evidence of upward pressure on wages".

Finally, he highlighted increased Scottish exports and rising inward investment into Scotland as additional positives.

The Scottish Government welcomed the report.

Finance secretary Derek Mackay said: "With Scotland's economy continuing to grow at the start of the year, it's welcome to see the improving outlook for the oil and gas sector alongside the continued strong performance in our labour market.

"Scotland's economy is strong, with output per head the highest in the UK outside London and the south-east.

"We are also one of the top destinations for inward investment, while Scottish productivity has grown faster than the UK's over the past decade."

He added: "We are using the powers we have to boost the economy and ensure that our economic potential is realised including our investment of almost £2.4bn in enterprise and skills, the most competitive business rates package in the UK, while investing in our National Manufacturing Institute and Scottish National Investment Bank."