Brexit has affected Britain’s competitiveness, further affecting the productivity and real wages of British workers in the coming years. That’s according to a new study by the Resolution Foundation, an independent British think tank.
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He says the UK’s departure from the European Union in early 2020 has made their economy “less open and competitive”. This led to higher costs for families and less investment by companies. Exports from Great Britain suffered less than feared, but imports from the EU were hit harder.
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The think tank believes it could take years before the full effect of Brexit is felt, but the trend towards a more closed economy is clear, it sounds. British productivity is expected to be 1.3 percent lower by the end of the decade, meaning wages will rise less rapidly. The loss per employee is estimated at an average of about 470 pounds (converted 576 euros) per year. Some workers, such as in the fishing industry, will still have to undergo “painful adjustments”. In terms of region, the north-east of Great Britain has been particularly affected, where most of the companies that export to the EU are located.
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“Brexit represented the biggest change to British trade relations in 50 years,” said the Resolution Foundation’s chief economist Sophie Hale. The prediction that this would lead to a sharp drop in exports has not materialized, but neither are the expectations that this would bring the British economy more factories, she says.
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Labor MP Hilary Benn is alarmed by the message that Brexit is making Britons poorer, “at a time when consumers are finding it increasingly difficult to make ends meet. Denial is not good governance.”
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