Scotland’s onshore GDP grew 0.3% in January 2025, according to statistics announced by the Chief Statistician. This follows growth of 0.5% in December 2024.

The Scottish growth in January was in contrast to contraction in the UK as a whole.

Figures published earlier this month by the Office for National Statistics showed that UK GDP fell by 0.1% month on month in January.

In the three months to January, Scotland’s onshore GDP  GDP is estimated to have grown by 0.5% compared to the previous three month period.

In January, output in Scotland’s services sector is estimated to have grown by 0.5%, while the production sector output contracted by 1.0% in January. Construction sector output contracted by 0.2% in January.

“In January the sectors with the largest contribution to overall GDP were Retail, Wholesale & Motor Trades, and Professional and Scientific and Technical Services, each of which contributed around 0.2 percentage points of growth to headline GDP of 0.3%,” said the Scottish Government.

Kevin Brown, Savings Specialist at Scottish Friendly, said: “The latest set of GDP figures reveal Scotland’s economy expanded by 0.3% in January. This was ahead of the rest of the UK, with the country’s services sector continuing to drive growth.

“It continues the more encouraging growth pattern seen in December, after a lacklustre Autumn.

“While this is good news, Scots are unlikely to feel much better off. Inflation is still running at just under 3%, and a series of price increases are likely to dent household finances further. In particular, council tax rises are expected to be double or even treble the rate of inflation, while water and energy bills are also set to rise in the coming months.

“Scottish businesses are also facing higher costs as the Employers’ National Insurance rise comes into effect. This may dent hiring and could contribute to further inflationary pressures. It’s likely to be an uncomfortable few months ahead for businesses and households.

“The best defence against tougher times is a strong financial cushion. Scots need to get their finances ship-shape in anticipation of a difficult few months. That means moving any savings languishing in low-paying savings accounts, or looking at stock market options that could provide a greater potential of beating inflation.”