Manufacturing sector downturn follows Grangemouth refinery closure

In Scotland, a significant economic downturn was observed in May 2025, largely attributed to the closure of the Grangemouth oil refinery. The refinery, a key player in the manufacturing sector, ceased operations in April, which in turn led to a noticeable decline in the country's Gross Domestic Product (GDP). This closure not only affected production output but also had lasting repercussions on local employment rates and overall economic stability. The Grangemouth refinery, a pillar of the Scottish economy for decades, served as a major source of jobs and revenue. Its sudden shutdown has left many workers facing unemployment and uncertainty, leading to a ripple effect on complementary businesses and services that relied on the refinery's operations. The manufacturing sector, which includes various industries, has been particularly hard-hit, prompting analysts to express concerns about the wider implications for the Scottish economy. As production fell, so did investments and business confidence in the region. Various companies that depended on the refinery for supplies and utilities found themselves in precarious positions, struggling to sustain operations amid rising costs and shrinking markets. The resulting economic environment has prompted calls for government intervention to support displaced workers and stimulate growth in the manufacturing sector. In conclusion, the closure of the Grangemouth oil refinery marks a pivotal moment for the Scottish economy, with significant challenges ahead. Policymakers are now faced with the task of addressing the immediate impacts of this downturn while working to build resilience against future economic shocks. The long-term economic health of Scotland may depend on the steps taken to rebuild and diversify its industrial base in the wake of this crisis.