Scottish economy grew 0.7% in latest quarter, government analysis shows

The Chief Economist’s report notes resilience but rising unemployment of around 5% and energy price pressures.

Daily Alba · 2 October 2026 · 2 min read

Illustrative image of Edinburgh office buildings at sunset. Illustrative image, not a photograph of the reported event.

Scotland’s economy grew by 0.7% in the latest quarter and 1.1% over the year, according to the Scottish Government’s September Economic Insights report.

Pressures

The report says unemployment has risen to around 5% for the first time since 2016, and the energy price cap rose by around 17% across July and October, with a further large rise forecast in January.

Rates and sentiment

Lower inflation has helped the Bank of England hold interest rates at 3.75%. Consumer sentiment recovered after April but fell again in July and remains below the start of the year.

Source & attribution: This original report is based on Scottish Government Chief Economist, published 15 September 2026. This is not independent on-the-ground reporting.

Scottish economy grew 0.7% in latest quarter, government analysis shows

Pressures

Rates and sentiment

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