The latest GVA figures show that the Welsh economy has returned to the first pre-pandemic scale in the UK, despite additional restrictions, but will close the historic gap with the rest of the UK. Challenges remain.

Wales’ total value added increased by 0.9% in the fourth quarter of 2021 and returned to production at the end of 2019, according to the National Bureau of Statistics’ model-based initial estimates.

Meanwhile, Scotland’s economy is 5% behind what it was before the pandemic began, and the West Midlands are still down nearly 10%.

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This is positive news, but Wales’ per capita GVA in 2019 was 72.6% of the UK figure, the second lowest in the UK country and region.

The current driving force is to close the gap as the country and the wider world economy face rising costs and a decline from Russia’s invasion of Ukraine.

Dr. Edward Jones, a lecturer in economics at Bangor University, said he was not surprised that Wales recovered at a faster pace than the rest of the UK.

He states: “Looking at the Spanish flu, all evidence shows that after the economy was opened, the most severely closed economies performed better than in other regions.

“This can come from increased confidence in the population after things are open, people can go out safely, and the company feels confident.

“Wales has also really benefited from tourism after the economy was opened, so this could also be a factor.

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“But this is great news, but we must be aware that there are many financial challenges we face. We were already having problems with inflation. It was before the conflict in Ukraine. . “

Ian Price, Director of CBI Wales, said:

“But companies are ahead of themselves for the foreseeable future, as the cost of living crisis continues, demand has not yet returned to pre-pandemic levels, and shortages continue to impact businesses in all sectors. You will be wary of going. “

A spokesperson for the Welsh government said: We’ve re-prioritized our budgets and reused our funds so that we can get financial support where we need it most and quickly.

“A package designed to complement and build support provided by the UK Government, which has funded Welsh companies in excess of £ 2.6 billion, which would otherwise have been lost 160,000. Helped to protect more Welsh jobs. We also extended a 100% business rate relief package for the retail, hospitality and leisure businesses until the end of the current fiscal year.

“Our economy has emerged from the unprecedented recession of a pandemic.

“But we continue to be concerned about the ongoing cost of living crisis and will do everything we can to support families and businesses to build a stronger and more resilient economy. . “

The Welsh economy has returned to pre-pandemic scale for the first time in the UK

Source link The Welsh economy has returned to pre-pandemic scale for the first time in the UK