Scotland's GDP performance over the past quarter stronger than the rest of the UK

The Scottish economy hit a bump in August, contracting by 0.1% while the UK as a whole managed modest growth. But zoom out, and Scotland’s performance over the past three months has actually been stronger than the rest of the country.

Much of that momentum has come from Scotland’s professional, scientific and technical industries, while retail, wholesale and motor trades – which are more exposed to consumer sentiment – have struggled.

Stubborn inflation and high interest rates are still weighing on confidence, though Scottish firms remain more upbeat than their peers elsewhere in the UK. Exporters, meanwhile, continue to battle the fallout from Donald Trump’s tariffs and a weaker dollar, both of which are making key exports like whisky and salmon pricier in the US.

Despite these headwinds, Scotland’s economy has shown real resilience. But the brakes that are inflation and higher interest rates will need to come off before we see growth accelerate.