According to a study, Brexit will cost UK employees 470 pounds annually
Key Takeaways:
- Britain's economy is becoming more walled off due to Brexit, which will negatively impact productivity and wages and leave the average worker with $577 less per year by the end of the decade.
According to a report released on Wednesday, Brexit is making Britain's economy more closed off, which will negatively affect productivity and wages and leave the average worker $577 less annually by the end of the decade.
The authors of the report are Resolution Foundation researchers and associate professor Swati Dhingra of the London School of Economics, who will begin serving on the Monetary Policy Committee of the Bank of England in August.
Analyzing the effects of Brexit has been made more difficult by the COVID-19 epidemic, which emerged shortly after Britain left the European Union in January 2020.
According to the researchers, the unexpected implementation of new post-Brexit trade laws in January 2021 did not result in a prolonged decline in British trade with the EU relative to that with the rest of the world.
"Instead, by making the UK less competitive and open to trade with a larger range of nations, Brexit has had a more pervasive effect. Ultimately, this will result in lower productivity and real earnings for workers, "Sophie Hale, an economist at the Resolution Foundation, stated.
While there are higher regulatory barriers, Britain does not suffer tariffs on its exports of goods to the EU.
These numbers don't account for any evaluation of the effects of revised immigration laws.
The effects will be far more noticeable in several industries. Due to challenges in exporting its fresh catch to EU consumers, the analysis predicted that Britain's modest but well-known fishing sector, many of whose members enthusiastically supported Brexit, will likely decrease by 30%.
Finance, insurance, and the legal professions, for example, will find it more difficult to serve EU clients. Still, their share of the British economy is only forecast to fall by 0.3 percentage points, to 20.2 percent. (1 dollar = 0.8151 pounds).