Scotland’s onshore GDP contracted by 0.2% in February 2025, according to statistics announced by the Chief Statistician.

This followed growth of 0.4% – revised from 0.3% – in January 2025.

In the three months to February, Scotland’s onshore GDP is estimated to have grown by 0.7% compared to the previous three month period — meaning Scotland’s economy grew slightly faster than the whole UK’s rate of 0.6%.

Deputy First Minister Kate Forbes said: “Global economic uncertainty has been rising but I am encouraged to see growth of 0.7% in the three months to February.

“Despite limited devolved powers, our forthcoming Programme for Government will face up to the very different economic landscape and take all the steps we can to improve the position of Scotland to draw in new investment and create jobs.

“However it is clear that a co-ordinated response is required and we need to see bold and decisive action from the UK Government at a scale which reflects the economic uncertainty being felt by business, workers and families – including the reversal of its damaging decision to increase employers’ national insurance contributions.”

Kevin Brown, Savings Specialist at Scottish Friendly, said: “The latest round of GDP figures paints a complicated picture for the Scottish economy. Growth has failed to keep up with the rest of the UK in February, which delivered a robust set of GDP figures earlier in the month (-0.2% vs +0.5% respectively).

“However, there were some chinks of light. Over three months, Scotland’s economy grew slightly faster than the whole UK (+0.7% vs +0.6%). Plus, encouraging retail sales data earlier in the month also showed increasing confidence among Scottish consumers.

“The picture might however worsen as the economy feels the heat from Donald Trump’s tariff regime. The final level of tariffs is unclear, but if the US persists with a 10% levy, it threatens to hurt key Scottish exports such as whisky and salmon.

“The US president has been backing away from tariffs in recent days and may yet pull back under pressure from US consumers. However, some damage is inevitable and Scotland’s economy will not escape completely. A small consolation may come from an interest rate cut in May, which now looks increasingly likely.”