Scotland’s onshore GDP returns to growth in September, outpacing UK in Q3
Scotland’s onshore GDP grew by 0.2% in the third quarter of 2025, demonstrating resilience despite significant economic headwinds.
According to the Chief Statistician, the economy expanded by 0.7% in September alone, rebounding from revised contractions in July (-0.4%) and August (-0.2%).
The quarterly growth, which outstripped the wider UK performance, was primarily driven by the professional, scientific, and technical services sector.
Kevin Brown, savings expert at Scottish Friendly, described the figures as a “mixed picture”. While acknowledging the economy’s “grit” in outpacing the UK over the quarter, he noted that Scotland has lagged significantly 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,” Mr Brown explained.
He added that persistent inflation and high interest rates have damaged confidence, while speculation regarding the Autumn Budget has effectively “put the brakes on activity”.
Deputy First Minister Kate Forbes welcomed the data showing Scotland outperforming the UK but emphasised the need for policy changes from Westminster.
“It is clear we need to see a change of course from the UK Government to ensure it truly supports industry, businesses and jobs,” Ms Forbes said, calling specifically for a reversal of the rise in employer National Insurance Contributions.
Ms Forbes highlighted the Scottish Government’s own initiatives to stimulate growth, including a refreshed Life Sciences Strategy aiming for an additional £15 billion in turnover by 2035, and significant investments in clean energy, such as the major offshore wind project in Caithness.


