By Terry Murden

Copyright dailybusinessgroup

Scotland’s onshore economy went into reverse in July, contracting by 0.3%, though it outpaced UK growth over three months to July.

In that period, GDP is estimated to have grown by 0.5% compared to the previous three month period.

This follows GDP growth of 0.2% in the second (April to June) and 0.4% in the first three months of 2025.

UK GDP flatlined in July but did grow at the fastest pace in the G7 group of the world’s advanced economies in the first three months of the year.

Kevin Brown, savings expert at Scottish Friendly, said: “After lagging the UK for most of the year, the fact the Scottish economy has outpaced the rest of the UK in the three months to July is a welcome surprise.

“But it’s important not to get carried away. By historical standards, growth is still fairly anaemic and the economy continues to face many headwinds, as evidenced by the fact the economy contracted in July.

Deputy First Minister Kate Forbes said: “While there has been encouraging growth over the last three months, Scotland’s economy continues to face challenges caused by issues like Brexit and increases to employers’ National Insurance contributions.

“We are working with businesses to boost growth and attract jobs and investment to the country. Just this week we are delivering Scotland’s first National Innovation Week to position Scotland as one of the most innovative small nations in the world.”