Brexit cost 6% of UK economy, Bank of England company data suggests
Summary
A study using Bank of England data shows Brexit has reduced the UK economy by about 6% over the last ten years. Half of this loss came from uncertainty after the referendum, and the rest from new trade barriers after leaving the EU customs union and single market.Key Facts
- The Bank of England company data tracks decisions and results from thousands of UK firms since the Brexit vote.
- The UK economy grew faster before Brexit but slowed afterward due to trade disruptions and uncertainty.
- Half the economic loss is linked to surprise and uncertainty after the 2016 referendum.
- The other half of the loss comes from barriers to trade after leaving the EU customs union and single market in 2021.
- The study estimates Brexit reduced UK growth by around 6% over ten years; wider studies suggest about 8%.
- Bank of England officials say Brexit shrank export markets and hurt economic growth and productivity.
- The impact on financial services was less harmful than many predicted.
- UK Prime Minister Keir Starmer plans meetings with EU leaders to discuss trade deals on food, energy, and emissions.
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