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Forecasted effect of Brexit on real GDP in the United Kingdom (UK) 2018-2023

Forecasted short-term effects of Brexit on real GDP in the United Kingdom (UK) in 2018-2023

by Statista Research Department, last edited Apr 27, 2016
Forecasted effect of Brexit on real GDP in the United Kingdom (UK) 2018-2023 In the lead-up to the Brexit referendum of 2016 the central argument of those who wished to remain in the European Union was that leaving would have negative economic consequences. Prior to the referendum the OECD predicted that by 2020, that the British economy could be 3.3 percent smaller than it would have been without Brexit, and 2.5 percent smaller in 2023.
No Brexit, no problem?
The political deadlock surrounding the British establishment resulted in the UK government delaying Brexit, potentially until October 31, 2019. Despite the uncertainty the British economy has shown some positive signals, growing by 0.5 percent in the first quarter of 2019. The most recent employment data was also encouraging, with the unemployment rate falling to just 3.8 percent as of March 2019.

Deal or no deal?
Until it is made clear what exact relationship Britain will have with the European Union, any forecasts made will be limited in their reliability. The current Brexit deal, with suggests Britain will leave both the single market and the customs union, has been rejected by the House of Commons three times. It could be the case that Britain still leaves with no deal, pivots toward a closer trading relationship, or doesn’t leave at all.
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Forecasted short-term effects of Brexit on real GDP in the United Kingdom (UK) in 2018-2023

Impact on real GDP
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Impact on real GDP
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by Statista Research Department, last edited Apr 27, 2016
In the lead-up to the Brexit referendum of 2016 the central argument of those who wished to remain in the European Union was that leaving would have negative economic consequences. Prior to the referendum the OECD predicted that by 2020, that the British economy could be 3.3 percent smaller than it would have been without Brexit, and 2.5 percent smaller in 2023.
No Brexit, no problem?
The political deadlock surrounding the British establishment resulted in the UK government delaying Brexit, potentially until October 31, 2019. Despite the uncertainty the British economy has shown some positive signals, growing by 0.5 percent in the first quarter of 2019. The most recent employment data was also encouraging, with the unemployment rate falling to just 3.8 percent as of March 2019.

Deal or no deal?
Until it is made clear what exact relationship Britain will have with the European Union, any forecasts made will be limited in their reliability. The current Brexit deal, with suggests Britain will leave both the single market and the customs union, has been rejected by the House of Commons three times. It could be the case that Britain still leaves with no deal, pivots toward a closer trading relationship, or doesn’t leave at all.
Show more
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