Scottish economy trails UK but Kate Forbes flags positive
Responding to the first-quarter figures published today by the Scottish Government's chief economist directorate, Deputy First Minister Kate Forbes said: 'It is encouraging to see quarterly growth continuing and getting stronger in Scotland - following a 0.1% rise at the end of 2024.'
Comparing the opening three months of this year with the first quarter of 2024, Scotland's onshore GDP was up by 1.1%. UK GDP rose by 1.3% on the same time comparison.
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GDP in the UK as a whole matched the Scottish growth of 0.1% quarter-on-quarter in the final three months of last year.
In the first quarter of 2025, the Scottish services sector expanded by 0.5%, production output grew by 0.3%, and construction activity was flat. The agriculture, forestry and fishing sector contracted by 0.4%. Growth in the distribution, hotels and catering, and electricity sectors made the largest positive contributions towards total GDP, the chief economist directorate noted as it published the figures.
Comparing the opening three months of 2025 with the same quarter of last year, Scotland's services sector has grown by 0.9%, and construction activity has expanded by 1%. Production output has grown by 2.6%, and the agriculture, forestry and fishing sector has expanded by 0.5%.
Ms Forbes reiterated her call for the UK Government to reverse its hike in employers' national insurance contributions.
This rise, announced in Chancellor Rachel Reeves's Budget on October 30, is aimed at raising £25 billion a year. It came into effect on April 6.
Ms Forbes said: 'Our limited powers mean we also require decisive action from the UK Government to counter the damaging economic impacts of Brexit and tackle the economic uncertainty currently being felt by business, workers and families - including the reversal of its damaging decision to increase employers' national insurance contributions.'
She noted the SNP's programme for government includes a six-point export plan 'to help businesses tap into new markets and increase sales'.
Ms Forbes declared: 'In the face of ongoing global challenges, dynamic steps are being taken to grow and transform Scotland's economy.
'We are pursuing new investment, building export potential and supporting innovation. Last week, the First Minister announced that US green aircraft engine developer ZeroAvia is to establish a new manufacturing base in Scotland, creating around 350 jobs.'
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