Scottish economy beats the UK in 2024 – but is slowing faster into 2025

Kevin Brown, savings specialist at Scottish Friendly, comments on this morning’s latest Scottish GDP figures:

“Scottish GDP figures fell flat in the final quarter of 2024, indicating a worrying slowdown in activity. October to December showed 0% growth, versus 0.4% in the quarter before. Flat GDP north of the border is behind already lacklustre 0.1% growth in the rest of the UK. However, one small consolation is that overall the Scottish economy grew 1.1% in 2024, versus just 0.9% for the UK as a whole.

“These figures reflect wider issues in the UK, but Scotland now looks at greater risk. This is because, while it is positive that on the whole Scotland's economy grew more than the UK in 2024, it is now faltering more quickly too. Scotland's economic growth appears to be coming to a halt at a critical moment, making Scottish households and businesses more vulnerable to worsening conditions.

“With inflation persistently higher than needed, there is likely to be little relief as rates remain relatively higher. Scottish businesses and households are facing significant headwinds from both inflation and rates, but the UK economy is also beginning to show signs that the labour market is shedding jobs.

“The message for households now is to save money where possible in order to build up rainy day savings. For those able to save more, ensuring that money is put to good use through long-term investments may help to keep them ahead of stubborn inflation.”