However, monthly GDP is estimated to have contracted by 0.1% in August 2025. This follows contraction of 0.3% in July and growth of 0.7% in June.

In the three months to August, the largest positive contribution to headline GDP growth was in Professional, Scientific & Technical Services, which contributed 0.4 percentage points to headline growth. The largest negative contribution was from Retail, Wholesale & Motor Trades, which contributed -0.1 percentage points to headline growth. 

Deputy First Minister Kate Forbes said: “These figures show the Scottish economy continues to face challenges from issues such as the UK government’s increase in employers’ National Insurance contributions and the cost of living crisis. It also highlights the need for the Chancellor to prioritise economic growth in the UK government Budget next month.

“However, it is encouraging to see growth of 0.7% in the three months to August. With the limited economic powers we hold, the Scottish Government is prioritising attracting jobs and investment, and making Scotland one of the most entrepreneur-friendly nations in Europe.”