Bregret - Statistics & Facts

Stuttering UK economy since Brexit

The most commonly cited negative side-effects of Brexit, have been economic. As of 2023, 47 percent thought that the economy had been damaged, and also that it had made things more expensive. A further 43 percent thought that staff shortages were the consequence of European Union workers leaving the country. The UK economy has certainly struggled since it left the EU, though this has occurred at the same time as the COVID-19 pandemic, which devastated the UK economy in 2020. Typical macroeconomic indicators such as, GDP growth, the unemployment rate, and the inflation rate have all been massively impacted by the effects of the pandemic, making it difficult to draw firm conclusions about Brexit from them at this stage. The large drop in UK/EU trade that occurred in early 2021, was almost certainly due to the start of the new trading relationship, however. So too, was a shortage of heavy-goods vehicle (HGV) drivers later that year, a direct result of HGV drivers from the EU leaving the UK workforce. This did little to alleviate a shortage of goods in late 2021 which precipitated the global inflation crisis of 2022. The UK Cost of Living Crisis which has dominated the economic narrative since 2022, has many causes, but a noticeable 67 percent of people thought Brexit was making the crisis worse. While Brexit may not be solely responsible for the UK's economic woes at present, there appears to be a broad agreement it is not helping either. Although this was the main fear of those who voted Remain in 2016, Leave voters were generally more concerned with issues of sovereignty, with just 37 percent believing it would help the economy. The so-far lackluster economic performance of Brexit Britain will therefore struggle to change the mind of all those who voted to Leave.

UK struggles with its place in the world

Ever since the UK opted to break from the EU, questions were raised as to what the UK could do to replace EU membership. The UK might see itself as a natural trading partner the United States, but as of 2023, has not managed to achieve a trade deal with the world's largest economy. Other Brexit supporters hoped that the UK could introduce freedom of movement with Commonwealth nations such as Australia or New Zealand. Despite these hopes, the 'Global Britain' envisioned by the architects of Brexit has struggled to take off in a difficult economic environment.

Although Brexit has brought these questions to the forefront, they are not new ones. Ever since 1945, Britain has struggled to completely define what its relationship with Europe should look like. In the immediate aftermath of the Second World War, Winston Churchill suggested it was one of three interrelated circles, the other two being the British Commonwealth and the United States. At various times, and for various reasons, the British establishment has gravitated towards one of these areas, usually at the expense of the other. After Britain joined the European Community in 1973, and confirmed its decision in a referendum in 1975, Britain has economically been closer to Europe than it has to the U.S. or the Asia. In 2021, for example, 53 percent of its exports went to Europe compared to 18.4 percent for the Asia, and 17.6 percent for the Americas. Over 56 percent of all imports came from Europe, with American markets accounting for 10.4 percent, and Asian imports at 23.7 percent. Current trading patterns will probably have to change significantly if Britain hopes to make a success of Brexit.