Scotland’s gross domestic product (GDP) grew by 1.1% for the whole of 2024 compared to 2023, while quivalent growth for the UK was 0.9%, the Scottish Government said.
“Scotland’s onshore GDP is estimated to have grown by 0.6% in December,” said the Scottish Government.
“This follows growth of 0.2% in November (revised up from -0.5%).
“In the three months to December (Quarter 4 2024), GDP is estimated to have remained flat (0.0% change) compared to the previous three month period (Quarter 3). This follows growth of 0.4% in Quarter 3 2024.
“In December the sectors with the largest contribution to overall GDP were Retail, Wholesale & Motor Trades, Electricity & Gas Supply and Manufacturing, each of which contributed around 0.2 percentage points of growth to headline GDP of 0.6%.”
For the fourth quarter of 2024 (October to December) Scotland’s GDP grew by 1.7% compared to the same quarter of 2023. Over the same period, GDP in the UK as a whole grew by 1.4%.
Deputy First Minister Kate Forbes said: “These figures are encouraging, showing a 0.6% increase for December and an overall growth of 1.1% in Scotland’s economy over the past year, which is forecast to strengthen further.
“With a focus on driving growth and investment, our draft budget for 2025-26 almost triples capital investment in the offshore wind supply chain to £150 million and provides funding to grow businesses at home and abroad.
“In addition, the First Minister has recently announced a £25 million Just Transition Fund to support the future of the Grangemouth industrial cluster.
“However, many levers to grow our economy lie with the UK Government and we remain deeply concerned by the cost of living crisis, rising energy costs and the potential impact of the increase in National Insurance employer contributions in the UK Budget which will have damaging consequences for businesses.”
Kevin Brown, savings specialist at Scottish Friendly, said: “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.”