Wales the only nation of the UK to see its economy shrink

Wales is the only nation of the UK to see its economy shrink, according to new figures from the ONS.

For the third quarter (Q1) of 2021 gross domestic product (GDP) in Wales declined 0.3% on the previous quarter.

Growth in England was 0.6%, while for Northern Ireland its economy grew 1.4% and for Scotland 0.9%.

GDP is a key economic indicator, which measures the value of goods and services produced across the UK.

Based on the nations and regions of the UK, the north-east of England saw the biggest quarter-on-quarter contractions in GDP in Q3 at 1.2%.

There was negative growth in the east of England, the west and east Midlands and the south-east. Economic growth for Yorkshire and Humber was flat.

The English regions with the biggest growth in GDP were London at 2.3% and the north-west at 1.2%.

For England and Wales the industry with the largest percentage growth was accommodation and food service activities. London recorded the largest growth for this industry, at 32.2%.

The decline in GDP for Wales in Q3 compared to a 6.2% growth in Q2 of last year, which was the best of any UK nation, following a contraction of 1.7% in Q1.

Figures for 2020 show that Welsh GDP declined 11.2% on the pre-Covid 2019, compared to a fall of 9.7% for the UK as a whole.

Total GDP for Wales was £75.6bn and on on a per head of population basis was £23,882, compared to £31,972 for the UK as whole.