New Welsh Government Sets Ambitious Economic Growth Targets

The new Plaid Cymru-led Welsh Government has unveiled an ambitious economic target aimed at narrowing Wales’ long-standing productivity gap with the rest of the UK, setting a goal to halve the difference within the next decade.

The pledge marks the first major productivity target introduced by a Welsh Government in 25 years and signals a shift toward placing economic performance at the centre of policymaking.

According to the latest figures from the Office for National Statistics (ONS), economic output per person in Wales currently stands at around 85% of the UK average. Ministers believe the new target is achievable because several key areas linked to productivity growth including education, skills and workforce development are already devolved to Wales.

However, officials acknowledge the challenge ahead, with regions across the UK also seeking to raise productivity levels amid rapid technological changes and growing use of artificial intelligence.

Cabinet Minister for Enterprise, Connectivity and Energy Adam Price confirmed the target during a statement in the Senedd, saying the administration led by Rhun ap Iorwerth intends to adopt a different approach to economic policy with the aim of tackling decades of weaker productivity growth.