Economic history of Wales

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

[1] 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.

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.

[3] Even during a boom period at the start of the 20th century, Wales had a narrow economic base dependent on the labour intensive exploitation of natural resources.

As global terms of trade changed, unemployment in the South Wales Valleys soared to unprecedented levels during the early 1930s (up to 59% in 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 Llanwern.