Some facts about Brexit:
Key Impacts
- Trade & market access
Trade openness (trade / GDP) has fallen more in the UK than in comparable countries since leaving the European Union.
Goods exports to the EU have dropped significantly (e.g., food & drink exports down ~34% since Brexit for that sector).
Services trade (especially financial, transport) has also been hit, though in some cases less than early worst-case predictions.
Additional paperwork, customs declarations and non-tariff barriers have increased business costs.
- Investment & productivity
Business investment has stalled or grown more slowly than it might have, in part due to uncertainty around the new arrangements.
Productivity growth (output per hour worked) faces headwinds: a less open economy, less labour supply from the EU, and more trade frictions all weigh on future potential.
- Labour market & migration
Free movement of EU nationals ended; this has led to reduced supply in some sectors (agriculture, hospitality, drivers).
While overall migration into the UK has sometimes increased via non-EU routes, the shift has had sectoral impacts.
- Overall growth & living standards
Some quantitative estimates suggest the economy is several per cent smaller than it would have been without Brexit: for example, one study said ~5.5%-smaller by a certain point.
Because of slower growth, real wage growth and improvements in living standards may have been weaker than they would otherwise.
The cost of doing business/importing goods is higher than before in some cases, which can contribute to inflation and higher consumer costs.
- Sectoral and regional effects
Some industries are hit harder: e.g., advanced manufacturing sectors relying heavily on cross-border supply chains.
Regions/metros with large financial services or EU-centric trade may feel more acute effects (for example, analyses of London’s economy have highlighted job losses tied to Brexit).