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THE ECONOMIC STATE OF POWYS

Earlier this year, I made the economic case for Powys, noting that it had fallen behind the rest of Wales during the last decade and should have been included as part of the Convergence region that qualified for £2billion of European funding.

The data that has emerged from the Statistics Office last week has reinforced this view even more.

In 1999, the GVA relative to the rest of the UK for Powys was 75.0 per cent, as compared to 77.3 per cent for Wales.

Fast forward to 2008, and we see that Powys now has a relative GVA of 63.1 per cent as opposed to 74.1 per cent for Wales.

Therefore, whilst the Welsh economy has grown by 47 per cent for the period 1999-2008, it has only grown by 31 per cent in Powys. Agriculture, in particular, has been hit hard, with a 75 per cent reduction in its contribution to the local economy.

If, as some politicians have stated, West Wales and the Valleys is to receive a third round of funding, then there is now a clear an unequivocal case for Powys to be included as part of this region.

Comments

Anonymous said…
why not include the whole of Wales Dylan?- 74.1% is below the threshold
December 12, 2010 8:06 pm
Professor Dylan Jones-Evans said…
because the European funding threshold is based on the relative prosperity per head as compared to Europe not the UK.
December 12, 2010 8:08 pm
Anonymous said…
what's the European figure?
December 12, 2010 8:13 pm
Anonymous said…
Can't be bothered looking - but I'm sure you know. Why wasn't Powys included in earlier rounds of European funding? I would have though that (language apart) it had more in common with, say, Gwynedd and Ceredigion, rather than Cardiff and the rest of the SE.
December 12, 2010 9:04 pm
Professor Dylan Jones-Evans said…
Certainly not under the Objective 1 round of funding. However, Powys was part of the Objective 5b programme for rural Wales between 1994 and 1999.

http://ec.europa.eu/regional_policy/reg_prog/po/prog_305.htm
December 12, 2010 10:13 pm
Anonymous said…
reason i ask is that eu and uk averages were very similar- has this changed? if not whole of wales could qualify.
December 12, 2010 10:36 pm
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