Scotland’s economy grew by 0.2% in the third quarter, similar to the second quarter, according to government statistics.
Growth in Scotland’s GDP over the July-September period outpaced the UK, which grew by 0.1% after growing by 0.3% in the previous quarter. Scottish GDP expanded by 0.7% in September.
However, compared with the same quarter last year, Scotland’s GDP grew by 0.9% while across the UK it grew by 1.3%.
Deputy First Minister Kate Forbes said: “Whilst it is positive to see Scotland’s latest monthly and quarterly GDP figures both outperforming the UK whole it is clear we need to see a change of course from the UK Government to ensure it truly supports industry, businesses and jobs.
“This means a reversal of the rise in employer National Insurance Contributions and meaningful, targeted action to help Scotland’s key industrial sectors.
“Despite limited fiscal and economic levers, the Scottish Government continues, for our part, to stand square behind business as the engine room of economic growth.”
Kevin Brown, savings expert from Scottish Friendly, said: “Today’s GDP figures paint a mixed picture for the Scottish economy. On the one hand, they point to a degree of resilience, but on the other they underline just how strong the headwinds remain.
“Although the Scottish economy outpaced the UK in the three months to September, it has significantly lagged over the past year. That may well reflect the impact of tariffs which are creating a major drag on key exports such as whisky and salmon, given the importance of the US market to those industries.
“Persistent inflation and higher interest rates have also knocked confidence. But perhaps more damaging has been the unhelpful speculation around what may or may not feature in the Budget, which has effectively put the brakes on activity.
“Taken together, the figures suggest the economy is showing grit despite the challenging backdrop. However, if the Government is serious about boosting growth, we need to see meaningful, growth-inducing measures in today’s Autumn Budget.”
In Quarter 3 2025 Scottish services output grew by 0.5%, production contracted by 1.3%, construction grew by 0.1% and agriculture, forestry and fishing contracted by 1.3%. Growth in the Business Services & Finance sector made the largest positive contributions towards total GDP.
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