Scottish economic bulletin: June 2025

Output

The economy grew 0.4% in the first quarter of 2025, picking up from weak growth at the end of 2024.

• Scotland's economic output contracted by 0.2% in March however more broadly grew by 0.4% in the first quarter of 2025 (UK: 0.7%), with the pace of growth increasing from 0.1% in the last quarter of 2024 (UK: 0.1%).^[1]

• Growth in the first quarter of 2025 was driven by the services (0.5%) and production (0.3%) sectors, with both growing faster than in the previous quarter, while construction sector output remained flat (0%). Within the services sector, consumer facing services grew by 1.3% over the quarter, reflecting stronger growth in Wholesale, Retail and Motor trades (1.8%), and Accommodation and Food services (1.2%). More broadly, growth was also strongest in the Professional, Scientific and Technical services (2.5%) and in the tech-driven Information and Communication sector (1.3%).
• Production sector growth was driven by strong growth in the Electricity and Gas supply sector (7.8%) and, to a lesser extent, Water Supply & Waste Management (1.9%), offset by falling Manufacturing output (-1.3%). Growth in electricity and gas supply was driven by an increase in wind-powered electricity generation across the quarter.