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Wales warned of 'really rough time' in post-coronavirus recession
'I think what we can probably expect to see in terms of a recovery in Wales is a stop/start recovery which is probably going to take some time'
by Will HaywardThe Welsh Government has said Wales is in for a "really, really, really rough" recession after the coronavirus crisis.
This dire warning came from Wales' finance minister Rebecca Evans as she updated the public and media at the Welsh Government's Covid-19 briefing.
Wales is already in a vulnerable position due to having more manufacturing jobs which cannot be done from home and is one of the most dependant parts of the UK on the furlough scheme.
On the state of the economy after the recession, Ms Evans said: "All the evidence and all of the advice and expert opinion says that we are in for a really, really, really rough time in the period ahead. What kind of shape that recession takes I know is a matter for discussion."
She would not go into great detail on how long the recession would go on for but described Wales' predicted recovery after Covid-19 as "stop/start".
"I think what we can probably expect to see in terms of a recovery in Wales is a stop/start recovery which is probably going to take some time," she said.
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First Minister Mark Drakeford and economy minister Ken Skates have said Wales does not have the "financial firepower" to maintain the furlough scheme alone without UK Government support.
Speaking about Wales being potentially hit harder than other parts of the UK, the finance minister added: "This is why some of the measures that the UK Government and Welsh Government have taken are so important.
"Because we are trying to preserve as many jobs as we can through the job retention scheme but also through those grants and those rate reliefs so that when the opportunity does come, when the recovery starts, those business are still there ready to trade and we are not facing those people who had previously had good jobs in viable businesses looking for work."
Many businesses have already had to apply for a grant, with Ms Evans saying the Welsh Government had “done their best to help businesses hibernate”.
Businesses in Wales have received £640m in grants from the Welsh Government since the coronavirus crisis began.
The latest figures published today (Wednesday) show more than 52,000 grants, totalling £640m, have been paid to businesses in Wales. You can read more on this here.