Economy

The UK economy unexpectedly shrank by 0.1% in January, a setback for the government as Chancellor Rachel Reeves prepares for the Spring Statement. This contraction, driven primarily by a decline in manufacturing, falls short of economists' predictions of 0.1% growth.

Scotland's private sector output experienced a third consecutive monthly decline in February, according to the Royal Bank of Scotland's Scotland Growth Tracker. The seasonally adjusted index, measuring combined manufacturing and service sector output, fell to 49.0, indicating a marginal contraction

Following a 1.0% increase in January, Scottish retail footfall experienced a 0.3% decline in February compared to the same period in 2024, according to data from the Scottish Retail Consortium (SRC) and Sensormatic Solutions.

Scotland's economy outperformed the UK in 2024, however, a sharp slowdown in consumer-facing sectors during the fourth quarter signals growing household caution amidst economic uncertainty, according to EY. The latest EY ITEM Club Scotland forecast projects a GVA growth of 0.9%. While GDP data

Former Bank of England Governor, Lord Mervyn King, has stated that an increase in income tax is likely necessary to fund heightened defence spending and facilitate public service reform. Speaking on Sky News, Lord King criticised the UK government's lack of ambition. He said: "When you’re faci

Scotland has secured over £850 million in investment over the past four months, driven by strong interest in its burgeoning energy transition sector. The total is boosted today by the Scottish National Investment Bank’s (SNIB) announcement of £6.7m for Subsea Micropiles, which is d

Scotland's onshore GDP experienced a 0.6% increase in December 2024, according to official statistics. This follows growth of 0.2% in November 2024, revised up from ‑0.5%. However, the overall picture for the fourth quarter of 2024 revealed stagnant growth, with a 0.0% change compared to the previ

UK inflation climbed to 3% in January, exceeding forecasts and presenting a challenge for the Bank of England (BoE). The Office for National Statistics reported the annual rate of price growth was up from 2.5% in December and higher than the 2.8% predicted by economists polled by Reuters. This figur

Scottish salmon exports have reached an unprecedented £844 million, a remarkable 45% increase in just one year, remaining as the UK's top food export.

Scottish retail sales saw a modest boost in January, with total sales up 1.5% compared to the same period last year.

The UK economy has defied predictions of contraction, registering 0.1% growth in the fourth quarter of 2024, according to preliminary figures from the Office for National Statistics (ONS). Economists polled by Reuters had forecast a 0.1% decline. Growth was driven by the services sector, which

Scotland's private sector showed tentative signs of recovery in January, according to the Royal Bank of Scotland Growth Tracker. The index, which measures combined manufacturing and service sector output, rose to 49.6 from 46.9 in December. While still indicating contraction, the softer decline was

Scottish retail footfall saw a modest increase in January, rising by 1.0% year-on-year, a slight improvement from December's 1.5% decline. Shopping centres and retail parks experienced growth, with retail parks showing a particularly strong performance, up 5.7%. Edinburgh and Glasgow also saw increa

The Bank of England (BoE) has lowered interest rates to 4.5%, a 0.25% reduction, amidst concerns about rising inflation and sluggish economic growth. The BoE's Monetary Policy Committee (MPC) voted 7-2 in favour of the cut, aiming to alleviate pressure on borrowers. However, the bank halved its 2025

Scotland's onshore GDP fell by 0.5% in November 2024, following a revised contraction of 0.4% in October. Over the three months to November, GDP shrank by 0.3%, a slowdown compared to the 0.4% growth seen in the third quarter of 2024 (July to September).