Brexit: UK has lost 27 billion pounds in trade exchange with EU in the first two years
The UK has suffered a 27 billion pounds loss in trade with the European Union during the first two years of Brexit, according to a study conducted by a London university.
Researchers at the London School of Economics highlighted the challenges faced by small and medium-sized businesses due to customs fees between the two blocs.
Academics from the Centre for Economic Performance analyzed thousands of data and found that British goods exports had fallen by 3% by the end of 2022, two years after the UK’s departure from the EU.
An assessment by the Office for Budget Responsibility (OBR) forecasts that the UK will experience a 15% decline in trade, resulting in a 4% long-term reduction in national income.
Thomas Sampson, one of the report’s authors, said: "We find that, through the end of 2022, the TCA reduced goods trade by less than half as much as the OBR projected. That said, the OBR number is a long-run projection and we only study the first two years of the TCA."
"Whether the decline in trade will get bigger over time remains to be seen. But the additional fall would have to be larger than what we’ve seen so far in order to match the OBR’s projections," he added.
(QG - Source: The Guardian / Picture: © Pixabay)