III.

Economy

The presence of iron ore, coal, lead, limestone, and plentiful water-power led to the early industrialization of the western valleys and attracted thousands of immigrants from other parts of Wales and England. By the end of the 19th century some of the earliest sites, like those at Blaenavon, were already obsolete. Coal and steel, however, continued to be the mainstay of the region's economy well into the 20th century—although by the 1930s such traditional industries were beginning to decline. This decline, which accelerated after the 1970s, created widespread unemployment in the west of the county. Newport, Pontypool, and Cwmbrân were important manufacturing centres of Gwent. From the 1970s industry began moving into the fertile area east of the River Usk.

Agriculture was also important to the economy of Gwent, with market gardening around Newport, dairying in the Usk valley, and sheep farms on the uplands; there was also some mixed and beef farming. Forestry and tourism both contributed to the economy.