Scottish economic bulletin: January 2025

Output

Economic growth was flat in the three months to October 2024.

• Scotland’s GDP growth was flat (0.0%) in the three months to October (UK: 0.1%) with the pace of growth slowing from September (0.3%).
• While the pace of growth in the second half of the year has slowed from the first half, latest data continues to indicate that Scotland’s GDP growth during 2024 has been notably stronger than in 2023. Over the past year (3-months to October annual growth) Scotland’s GDP has grown 0.9% (UK: 1.1%).^[1]

• Growth over the quarter was supported by a pick-up in growth in the services sector (0.3%), and construction sector (0.4%). Growth in both these sectors offset a 2.1% fall in production sector output, which continued its recent trend.
• Within the services sector, growth was relatively broad based across service industries with strongest growth in professional, scientific, and technical services (2.1%) and in arts, culture and recreation (2.0%). Over the past year, the service sector has grown 1.6% and has been a key driver of growth in the economy.
• Within the production sector, the fall in output in the 3-months to October was broad based across production industries in which manufacturing output fell by 1.4%. Compared to the 3-months to October in 2023, production output has fallen 2.6% over the past year (manufacturing: -1.0%) while construction output has fallen 0.1%.