Scottish Friendly savings expert Jill Mackay comments on this morning's Scottish GDP data:

“Scotland was always unlikely to escape the general gloom on the UK economy, but today’s figures were even worse than expected. In common with elsewhere in the UK, Scottish GDP took a hit from rising utilities bills associated with ‘Awful April’ and the continued uncertainty over the tariff regime in the US.

“There is still plenty to trouble Holyrood. Domestically, Scotland’s retail economy still looks sluggish, with a recent Scottish retail sales monitor showing a lacklustre 0.1% rise in sales from May last year. Only gaming and garden retailers escaped the gloom.

“The international situation continues to be unpredictable. The ultimate shape of the US tariff regime remains unclear, with key Scottish exports such as whisky and salmon still under threat. The US is the largest market for Scottish whisky. Nevertheless, the recent spate of deals – with India, the EU and the US – should improve the situation in the longer-term. Some respite may come from lower interest rates, which could come as soon as August.

“With the outlook distinctly murky for Scottish households, the best defence is diligent saving. Whatever the direction of interest rates or the economy, basic financial good housekeeping, such as securing the best possible savings rates, or looking at stock market options, can help keep family finances afloat.”