Scotland's first minister has called on consumers to remain confident following the publication of a report that warns the events of September 11 will hit the Scottish economy.

The report by Andrew Goudie, the Scottish executive's chief economist, says that even before September 11 consumer confidence had been the main support for global economic growth. The "sharp adverse shock" of the terrorist atrocities, together with increasing uncertainty and a deteriorating global economic environment mean that "Scottish economic growth will almost certainly decline by more than was previously anticipated in 2001 and 2002".

Warning that global uncertainty makes the precise impact unpredictable, the report says that tourism, aviation and electronics will be the hardest hit sectors of the economy.

First minister Henry McLeish used a breakfast meeting with business leaders to underline his confidence in Scotland's economy.

McLeish said: "The executive has been working closely with a wide range of businesses across Scotland and will continue to engage with the business community and trades unions to identify solutions to the challenges brought about by the terrible events in the US."

"I am determined citizens will feel secure and safe - we need stability in the current climate of instability brought about by the terrorist attacks. We must show confidence in these tough and testing times," he added.

SNP leader John Swinney, who also attended the breakfast meeting, said the Scottish economy had been in "real trouble" before the terrorist attacks, with a manufacturing recession, a tourism industry suffering badly and a rate of growth far slower than the rest of the UK.

"We need a vibrant economic strategy built on Scotland being an exciting place to live, a great country to visit, and a strong economy in which to trade and do business. Some of this can be delivered by the Scottish parliament, but, as was clear from the issues raised this morning, many of the key decisions are still taken by Westminster," he said.