Scotland’s economy grew by 0.2% in the second quarter and by 0.6% in June as companies adjusted to the new cost regime and US tariffs.
The figures, up from just 0.1% in May, were described as “encouraging” by Deputy First Minister and Economy Secretary Kate Forbes, with a particularly strong showing in manufacturing, professional services and scientific & technical services.
May’s low figure was partly a result of the fallout from the closure of the Grangemouth oil refinery, and despite the uplift analysts have warned of further downward pressures in the months ahead.
Scottish Friendly savings expert Kevin Brown said: “There are still troubles lurking for the Scottish economy. The government’s finances are in a sticky spot.
“The gap between the country’s revenues and spending widened to 11.7% of GDP in 2024/25, more than twice that of the rest of the UK. Retail sales continue to be lacklustre, suggesting consumers are still shopping with caution.
“There is still some uncertainty over key Scottish exports such as whisky. The US is the largest market for Scottish whisky, and since efforts to have the 10% tariff removed were unsuccessful during recent talks, the measure is thought to be costing the Scotch industry approximately £4m each week.”
Ms Forbes has announced further support for startups with an additional £3.6 million contribution to the Scottish EDGE Awards over the next three years.
The multi-year pledge goes beyond a Programme for Government 2025-26 commitment to provide £1.2m this year by committing to deliver the funding level for the next three years. The funding will be matched pound-for-pound by the private sector over the same period.
Since being established in 2012 Scottish EDGE has awarded more than £29m to more than 700 businesses – with the platform helping many to establish national and international business operations.
Ms Forbes visited the headquarters of Ooni in Edinburgh. Ooni, the pizza oven company which is a past recipient of Scottish EDGE funding and now operates globally.
At Grangemouth, workers directly impacted by the end of refining are to receive additional targeted support to help them transition into new jobs.
INEOS O&P employees who were part of shared services for Grangemouth oil refinery and are directly affected by its closure will be able to receive support from Forth Valley College to develop skills for emerging sectors.
Unite Scottish Secretary Derek Thomson said: “The additional support for Grangemouth based workers will deliver targeted assistance for those facing redundancy due to the closure of the oil refinery.
“The investment by the Scottish and UK governments for retraining will provide INEOS workers with some reassurance that they are not being left behind.
“It will help support them for new job opportunities in the wider energy sector. Unite will continue to do all we can to encourage government, public bodies and companies to deliver a Just Transition for Grangemouth workers and this investment is a step forward in that campaign.”
#Economy #grows #ahead #looming #pressures #Daily #Business