Scottish economic bulletin: March 2025

Output

Economic output grew by 1.1% over 2024, but was flat in the final quarter of the year.

• The Scottish economy grew 1.1% in 2024 (UK: 1.0%), with growth strengthening from 0.5% growth in 2023. However, the pace of growth was notably slower in the second half of the year.^[1]
• Latest data show Scotland’s GDP was flat at 0.0% in the three months to December (UK: 0.1%) with the pace of growth slowing from 0.4% growth in the third quarter.

• In the fourth quarter, positive output growth in the Services (0.2%) and Construction (0.5%) sectors, was offset by a fall in Production sector output (-1.1%). The fall in Production output was relatively broad based and was partly driven by a fall in Manufacturing output (-1.8%).
• Services sector growth continued to be softer than in the first half of the year and was mixed in the fourth quarter with growth in Business Services and Finance (0.4%) and Professional Scientific and Technical services (2.4%) partially offset by a fall in output from retail and hospitality (-0.6%). More broadly, consumer facing services output fell 0.2% in the fourth quarter following stronger growth rates in the first half of the year.