Understanding Scotland Economy Tracker - February 2025

24 Feb

Published Monday 24th February 2025

Our latest independent quarterly tracker has revealed the economy is emerging as a key priority as 62% of Scots say conditions have worsened in past year.

Key findings:

Front cover of the February Understanding Scotland Economy Tracker report showing a run down street in Inverness

Health care and the cost of living remain top priorities, with the economy emerging as a high priority for Scots
Healthcare continues to dominate as the most pressing issue for Scots, increasing by four percentage points to 50% naming it as a priority. Cost of living remains stable at 34%. Meanwhile, the proportion identifying the economy as a priority has risen by four percentage points to 20% after hitting a low of 16% in November 2024.
Glimmers of optimism as more Scots see the country heading in the right direction
While 53% of Scots still believe the country is heading in the wrong direction, this is down three percentage points from the last wave. At the same time, optimism is growing, with 24% now saying Scotland is on the right path - an increase of four percentage points. Meanwhile, 23% remain uncertain, with optimism narrowly overtaking uncertainty for the first time in recent waves.

Economic outlook remains bleak
A majority of Scots (62%) say economic conditions have worsened over the past year, and 64% believe they will deteriorate further in the next year. While this marks a slight decline of one to two percentage points in pessimism since the last wave, optimism has not grown, with fewer than one in ten reporting an improvement in the last year or predicting an improvement over the next year.

Cost-cutting becomes routine but financial strain hits some harder
Spending cutbacks remain widespread, with 53% of Scots reducing leisure activities, 52% cutting non- essential spending, and 45% saving less than usual—figures that have changed little since November 2024. However, financial strain is more pronounced among Scots aged 16-34, those in lower social grades, households with children, and ethnic minorities, particularly affecting their mental health, physical well-being, and sleep.

Signs of recovery for some sectors but non-essential spending cuts persist
Spending reductions are expected to continue this year, particularly in dining out, with 45% cutting back on takeaways and deliveries and 43% on restaurants. However, there are small signs of recovery in certain areas: the proportion expecting to spend more on clothing and footwear is up five percentage points, while leisure and culture and holidays outside the UK have seen increases of three percentage points each.

Three key graphs from the report below.