Scottish GDP figure paints mixed picture for the Scottish economy

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.