Executive summary

The aftermath of Brexit, the global upheaval caused by the COVID-19 pandemic, and inflationary and budgetary pressures have compelled Wales to re-evaluate its approach to regional development. Wales is increasingly taking a regional perspective – considering how government policy and actions affect its four economic regions – to help confront regional inequalities and foster well-being across its territory. The Welsh economy faces a sizeable productivity gap with the UK average and substantial, persistent differences across Welsh regions. Between 2011 and 2021, the productivity level of the South East region of Wales has consistently been more than 30% higher than that of the Mid Wales region (measured in gross value added per hour worked). The 2020 OECD report The Future of Regional Development and Public Investment in Wales, United Kingdom provides recommendations to help boost productivity across Welsh territories, focusing on enhancing transport performance, building workforce skills and investing in research and development.