Scotland’s onshore economy shrank by 0.2% in May 2025, reversing a revised growth of 0.1% in April, according to official figures.
Economy
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UK inflation unexpectedly rose to 3.6% in June, casting doubt on the likelihood of an interest rate cut in August. The figure, released by the Office for National Statistics, surpassed analysts' expectations that inflation would hold steady at May's rate of 3.4%.
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The UK economy experienced an unexpected contraction of 0.1% in May, according to official figures from the Office for National Statistics (ONS). This fall in gross domestic product (GDP) occurred despite a temporary pause in US tariffs, defying economists' forecasts of 0.1% growth.
The outlook for the Scottish and UK economies has weakened, with growth now expected to remain sluggish through the rest of 2025, according to the Fraser of Allander Institute at the University of Strathclyde. In its latest quarterly Economic Commentary, the Institute has downgraded its forecasts fo
The United Kingdom's economy grew by 0.7% in the first quarter of 2025, matching the initial estimate and marking the strongest expansion in a year. This welcome news for the UK government, which follows a modest 0.1% gain in the final quarter of 2024, positions the UK with the highest growth rate a
Scotland’s onshore GDP contracted by 0.2% in April 2025, according to statistics announced by the Chief Statistician, following contraction of 0.4% in March 2025 (revised from contraction of 0.2%). In the three months to April, GDP is estimated to have contracted by 0.2% compared to the previo
The value of goods and services produced in Edinburgh per head of population has surpassed London’s for the first time, according to economic data recently published by the Office for National Statistics (ONS).
UK CPI inflation has remained frozen at 3.4% in May, after the Office for National Statistics corrected April's 3.5% reading to 3.4%. Annual food inflation surged to 4.4% last month, a notable rise from 3.4% in April. This was spurred by the fastest-ever recorded increases in the price of sugar, jam
Scotland has secured 135 foreign direct investment (FDI) projects in 2024 and cemented its reputation as the top UK FDI location outside London after marking a decade in the position. Despite a drop of seven projects (-4.9%) on the year before, this is still the second highest annual number of proje
Scottish economic growth could exceed the wider UK economy in 2026, according to KPMG’s latest European Economic Outlook. KPMG forecasts Scotland’s GDP will grow by 1.2% in 2026, slightly ahead of the 1.1% growth rate forecasted for the UK. The firm’s report predicts Scottish busin
The UK economy contracted by 0.3% in April, a sharper decline than economists had forecast. Data released by the Office for National Statistics on Thursday revealed a more substantial downturn than the 0.1% contraction that had been anticipated, reversing the 0.2% growth seen in March.
Reflecting wider trends, the Scottish economy is currently in a fragile state, exacerbated by the US's recent announcement of 10% tariffs on all imports, which has dampened business and consumer confidence, according to the latest EY ITEM Club Scotland forecast. The US tariffs are likely to have an