Scotland’s economy has demonstrated resilience with a GDP growth of 0.3% in July 2024, surpassing the UK’s stagnant economic performance during the same period. This growth follows a revised 0% change in June and contributes to a 0.3% increase in GDP over the three months leading up to July.
The main sectors driving this growth were manufacturing and information and communications services, each contributing significantly to the overall economic performance. The Scottish economy’s recovery is attributed to increased consumer spending, particularly bolstered by major sporting events like the Euros and the Olympics. These events have stimulated economic activity, helping Scotland weather challenging fiscal conditions. Despite these positive developments, uncertainties remain, especially with the upcoming UK Budget in October, which could impact economic stability.
Kevin Brown, savings specialist at Scottish Friendly, comments on this morning’s latest Scottish GDP data:
“Scotland’s economy outpaced the wider UK economy in July, growing 0.3% while the wider UK economy stalled at 0.0%. It is notable that one of the chief explanations offered was increased spending thanks to major sporting events, including the Euros and the Olympics.
“For Scottish households this is modestly good news as it means the Scottish economy is weathering the challenging fiscal environment. With interest rates set to fall further toward the end of the year, this could provide a further boost to households and businesses alike.
“The UK Government’s new Budget is looming in October, but some of its potential effects could be diluted thanks to the Scottish Government’s devolved control of some taxation matters. This includes income tax bands and rates, stamp duty and council tax – all of which have been subject to speculation ahead of the Budget on 30 October.
“Despite these positive factors, the message for households in Scotland is still clear: there is a lot of uncertainty ahead and it would be wise to use any disposable income to shore up personal financial resilience. Rainy day funds are the key to this. However, for individuals looking at the longer term, investing could provide greater potential for growth over the longer term.”
