A decade after Brexit: How has the UK economy changed?

Key takeaways:

• Since the Brexit referendum, the UK has faced a series of major domestic and global shocks, including the Covid-19 pandemic, high inflation, the war in Ukraine and changes in government, all of which have weighed on economic performance.

• Brexit created uncertainty for the UK economy, affecting growth prospects, investor confidence and financial markets.

• Investment activity was impacted after Brexit, amid continued debate over whether leaving the European Union would strengthen or weaken the UK’s long-term economic position.

• The UK also lost part of its EU workforce, including workers from countries such as Poland, which added pressure to the labour market and contributed to higher employment costs.

• In some sectors, employers had to hire less qualified workers at higher wages, increasing labour costs and feeding into inflationary pressures.

• The economic challenges facing the UK cannot be attributed to Brexit alone, as they were also shaped by Covid-19, inflation, the war in Ukraine and domestic political changes.

• Following Brexit, the UK has actively sought to strengthen its economic relationships with global partners, including the United States, Asia and the Middle East.

• London’s position as a leading financial hub has weakened as other centres in Asia and the Middle East continue to develop, although the city remains an important player in global finance.