The Resolution Foundation said leaving the EU has reduced how open and competitive the British economy is. He goes on to say that it has also led to an increase in the cost of living and a decline in the level of business investment. The report, in collaboration with the London School of Economics, said all of this was a result of the “devaluation inflation peak” after Brexit. However, the new post-Brexit trade rules, which came into force in January 2021, did not lead to such a persistent drop in British exports to the EU as many had predicted, although imports from the EU fell faster than those from other countries. . the world, the study suggested. He said Britain had seen an 8% drop in trade openness – trade as part of economic output – since 2019, losing market share in three of the largest non-EU import markets in 2021, the US, Canada and Japan. The full effect of the Trade and Cooperation Agreement will take years to be felt, but the move to a more closed economy, the authors say, will make the UK less competitive, which would reduce productivity and real wages, it was predicted. The survey estimated that labor productivity would fall by 1.3% by the end of the decade from changes in marketing rules alone, contributing to weaker wage growth, with real pay being 70 470 per employee lower each year, by average, otherwise it would be. The northeast side has been hit hardest Production in Britain’s relatively small but high-profile fishing industry – many of which strongly supported Brexit – is expected to fall by 30% and some workers will face “painful adjustments”, the foundation said. The report adds that the northeastern country is expected to be hit hardest by Brexit, as its companies are highly dependent on exports to the EU. Read more: The long shadow of Brexit darkens UK-EU relations as negotiations remain deadlocked Use the Chrome browser for a more accessible video player 48:37 Sky political editor Beth Rigby asks European Commission Vice President Maros Sefkovic Sophie Hale, chief economist at the Resolution Foundation, said: “Brexit represents the biggest change in Britain’s economic relationship with the rest of the world in half a century. “This has led many to predict that it would cause a particularly large drop in exports to the EU and fundamentally reshape the British economy to further processing. “The first of these has not taken place and the second seems unlikely to do so. By contrast, Brexit had a more pervasive impact by reducing the UK’s competitiveness and opening up to trade with a wider range of countries. “This will ultimately reduce productivity, but also the real wages of employees. Not just teething problems “Some sectors – including fisheries – continue to face significant changes in the coming years, but the overall nature of the UK’s economy based on services will remain largely unaffected.” Britain’s fishing industry was likely to shrink by 30% due to difficulties in exporting its fresh catches to EU customers, the report said. Hillary Benn, a Labor MP and co-senator on the UK Committee on Trade and Business, said the government’s Brexit deal “makes businesses and consumers poorer at a time when people in the country are struggling to they make it through “. He said the report showed that these were not just “teething problems” but a “long-term financial problem” and called on the minister to reconsider the agreement.
