Studies Report Brexit Reduced UK Economic Growth and Trade Across Sectors

1-Minute Brief

Analyses suggest Brexit has had a broad impact on the UK economy, affecting both overall growth and sectoral trade.

Key Facts

• Bank of England company data suggests Brexit cost the UK 6% of its economic growth potential.
• Analysis indicated the UK economy could have grown more if it had not exited the EU.
• A study found that Brexit has reduced trade in almost every sector of the UK economy.
• Much of the economic cost is attributed to the UK's departure from the EU single market, according to the study.
• Recent calls for a new customs union with the EU are suggested to have limited impact on reversing these effects.

What Happened

Recent analyses from the Bank of England and an independent study examined the economic effects of Brexit, reporting declines in both overall growth and trade across UK sectors.

Why It Matters

These findings contribute to ongoing debates about the long-term economic consequences of Brexit and inform discussions on future UK-EU trade relationships.

What's Next

Further analysis and policy discussions are expected as stakeholders consider potential responses, including possible trade arrangements with the EU.