Economic history of Wales

Source: Wikipedia, the free encyclopedia.

The development of the

coalfields led to the industry transforming many parts of Wales. Wales experienced de-industrialisation in the late 20th century, becoming more of a service economy
to the present day.

18th century

Until the mid 18th century, economic development in Wales was restricted by its peripheral location, predominantly upland topography, bad communications and sparse population.

Smithfield Market from the 14th century onwards. The drovers were instrumental in establishing the first banks in Wales, such as Banc Y Ddafad Ddu ("Black Sheep Bank") in Aberystwyth.[1]

Llwynypia during the early to mid 1910s, Rhondda, Wales.

Industrial development from the mid 18th century was stimulated by the potential of Wales' rich mineral deposits, the arrival of English entrepreneurs and financiers and advances in technology. The development of iron smelting by coke made the South Wales Valleys a natural industrial location during the Industrial Revolution and, from the mid 18th century, increased demand for metals and coal was generated first by war and later by the advent of steamships and railways.[1]

The northern rim of the

Metallurgical industries required ever increasing quantities of coal, which was initially largely mined for this purpose. However, coal mining for sale developed in earnest from the mid 19th century and this was to become the signature industry of the region, transforming the economic and social landscape of the South Wales Valleys.[1]

19th century

Although a much smaller industry than coal, the

boom and bust nature of the construction industry.[2] As most of the workforce were drawn from rural, Welsh-speaking communities, slate quarrying was described by one historian as "the most Welsh of Welsh industries".[2]

20th century

Merthyr and 76% in Pontypridd), despite the exodus of 400,000 people from the region between 1921 and 1939.[4]

In the post-war era, the steel and tinplate industries consolidated on a smaller number of larger sites, such as the new works at Port Talbot and

Commercial Bank of Wales (later renamed Bank of Wales) but the company was later taken over by HBOS
and the brand dropped in 2002.

In the post-war decades there was a shift towards service sector employment, which accounted for 60% of jobs by the 1980s, many of them held by women.

Driver and Vehicle Licensing Centre to Swansea.[5] From the 1970s on, the steel industry contracted, with works at Ebbw Vale, Shotton and East Moors in Cardiff closing and layoffs elsewhere. The early 1980s recession had a bigger impact in Wales than in other parts of the UK: between 1979 and 1982, Wales lost 130,000 jobs[5] and the employment rate fell to 62%.[8] Recovery started later in Wales, and structural changes left a legacy of high unemployment amongst older men, especially in the Valleys.[8]

21st century

Video of Welsh Government COVID-19 press conference in which the Economy Minister Ken Skates, announces that HMRC refused to share their data with the Welsh Government.[9]

Wales lags well behind the financial city of London, but according to the World Bank, in 2019 Wales' GDP /capita was better than 127 other nations.[10] Over the long term, output and productivity growth in Wales has been broadly in line with the UK and the developed world as a whole. What has marked Wales out is a low activity rate compared to other parts of the UK.[11]

Indicators

Gross Value Added (GVA)[12]
Year £ million £ per head Index of £ per head (UK=100)
1989 19,445 6,810 85
1990 20,990 7,335 84
1991 21,724 7,561 83
1992 22,659 7,874 83
1993 23,697 8,218 83
1994 25,049 8,675 83
1995 26,388 9,135 84
1996 27,518 9,517 82
1997 28,672 9,904 80
1998 29,787 10,273 79
1999 30,736 10,596 77
2000 31,898 10,973 77
2001 33,525 11,520 77
2002 35,252 12,074 77
2003 37,262 12,712 76
2004 39,340 13,352 76
2005 40,711 13,784 76
2006 42,697 14,396 75
2007 44,263 14,853 74
2008 45,610 15,237 74
2018 65,089 20,815 70

References

  1. ^ a b c d Falkus, M. and Gillingham, J., eds (1987) Historical Atlas of Britain. London: Kingfisher.
  2. ^ a b c The Welsh Academy Encyclopedia of Wales. Cardiff: University of Wales Press 2008.
  3. ^ Elwyn Jones, G. The Role of Education in National Identity and Economic Development in Wales since 1800. Background paper.
  4. ^ Day, G. (2002) Making Sense of Wales. A Sociological Perspective. Cardiff: University of Wales Press.
  5. ^ a b c d e f Jenkins, P. (1992) A History of Modern Wales, 1536–1990. Harlow: Longman.
  6. ^ "The Welsh Economy". Cardiff Business School. Archived from the original on 12 March 2010. Retrieved 7 May 2022.
  7. Morgan, Kenneth O.
    (2002) Rebirth of a Nation: A History of Modern Wales. Oxford: Oxford University Press.
  8. ^ a b Department for Work and Pensions / Welsh Assembly Government (2007) Wales: Towards Full Employment.
  9. ^ Nuttall, Andrew (20 October 2020). "UK Government repeatedly "turning down" First Minister's solutions for job support". Gannett Company. Newsquest Media Group Ltd. The Leader. Retrieved 13 January 2021.
  10. ^ "PPP (current international $)". data.worldbank.org. World Bank. Retrieved 7 July 2020.
  11. ^ "Economic Futures for Wales" (PDF). Archived from the original (PDF) on 2011-08-12. Retrieved 2022-05-07.
  12. ^ "Beyond 20/20 WDS – Table view". statswales.wales.gov.uk. Archived from the original on 18 July 2011. Retrieved 7 May 2022.