Ernst & Young – Scottish Winter Forecast, Mar 2025

Scotland faces low productivity and high labor market inactivity.

Despite outperforming the UK in 2024, a slowdown at the end of the year led to a downward revision of growth forecasts. Consumer and business confidence is declining due to economic prospects and upcoming tax changes. Mortgage lending is expected to grow due to lower interest rates, positively impacting the construction sector. Efforts are needed to address skill shortages and increase workforce participation to revitalize Scotland's labor market.