![\"Michelle](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2025\/04\/Michelle-Ferguson-CBI.png\")
Scottish businesses have been investing more over the past year but exports have fallen and productivity shows no sign of improving, according to an annual index.<\/p>\n
Business investment in Scotland has risen to\u00a010% of GDP, its highest level in 20 years, but exports dropped sharply to over\u00a020% of output, widening the gap with the UK average (31%).<\/p>\n
Early-stage entrepreneurship\u00a0remains the lowest among UK nations at\u00a09%, significantly below the UK at almost\u00a011%.<\/p>\n
Ahead of January\u2019s Scottish Budget and the Holyrood elections in May, the sixth annual CBI\u2013Addleshaw Goddard Scottish Productivity Index, compiled by the Fraser of Allander Institute, shows progress in business investment, patenting activity, educational attainment, internet speeds, and the expansion of EV charging infrastructure.<\/p>\n
But it also highlights persistent and structural challenges \u2013 especially in exports, entrepreneurship, workforce training, and long-term health outcomes \u2013 that continue to constrain Scotland\u2019s productivity and economic potential.<\/p>\n
CBI Scotland is launching its business manifesto in January, ahead of the Scottish Parliament elections \u2013 which will outline plans to help solve long term economic inactivity, how to upskill the workforce and keeping the momentum on business investment \u2013 all to drive productivity and growth in all sectors of the Scottish economy.<\/p>\n
Michelle Ferguson, director, CBI Scotland, said: \u201cThis year\u2019s Index shows that Scotland is not standing still \u2013 firms are investing more, digital infrastructure is improving, and we are building on real strengths in education and innovation. <\/p>\n
\u201cBut it also underlines that these gains are not yet translating into the step change in productivity our economy needs.<\/p>\n
\u201cToo many businesses are still held back by weak export performance, falling levels of workforce training and the growing impact of long-term ill health on participation in the labour market.<\/p>\n
\u201cWith a Budget in January and elections to Holyrood next year, firms will be looking to the Scottish Government for decisive moves on tackling economic inactivity, addressing challenges around skills and training as well as boosting exports.<\/p>\n
\u201cIf we want higher growth, better wages and improved living standards, we need a plan of action which delivers. Scotland has all the ingredients for success; a highly educated workforce and strong business investment \u2013 the task now is to bring them together at pace and at scale.\u201d<\/p>\n
Deputy First Minister Kate Forbes said: \u201cThis report captures important measures that contribute to whole-economy productivity. <\/p>\n \u201cDespite challenging economic headwinds, since 2007 Scotland\u2019s productivity has grown at an average rate of 0.9% per year compared to the UK average of 0.3%.<\/p>\n \u201cI am encouraged to see business investment reaching its highest level in 20 years, showing that industry recognises Scotland\u2019s\u00a0real strengths \u2013 one of the UK\u2019s most highly educated workforces, globally significant energy assets, and improving digital and green infrastructure.<\/p>\n \u201cThe Scottish Government is driving a new national and regional approach to skills planning and our Programme for Government provides certainty for businesses to scale and grow by supporting entrepreneurs, boosting planning capacity and reducing regulatory complexity and costs.\u201d<\/p>\n \t <\/div>\n![\"Kate](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2025\/02\/Kate-Forbes-at-EFI-.png\")