How Brexit’s hit to UK economy was swamped by Covid pandemic

UK brexit economy covid pandemic
Middle East
  • Date: 01-Jul-2021
  • Source: Financial Times
  • Sector: Economy
  • Country: Middle East
  • Who else needs to know?

How Brexit’s hit to UK economy was swamped by Covid pandemic

More than five years after the EU referendum, Britain remains as divided as ever on the question of the UK's membership of the bloc.

However, economists from both sides of the argument are in agreement on one thing "” new rules and regulations ushered in by Britain's new relationship with Brussels have caused damage to the UK's economy, hitting trade and deepening labour shortages.

But the problem for pro and anti EU economists as they attempt to assess the effects of the first six months of the UK-EU Trade and Cooperation Agreement, is that the picture on trade and employment has been swamped by the economic impact of the Covid-19 pandemic.

Judging the long term effects beyond the coronavirus crisis is also uncertain "” as is attempting to find the economic benefits of the UK's break with Brussels.

John Springford, deputy director of the Centre for European Reform think-tank, said: "Generally, Covid has swamped the economic data making any comparisons difficult, so we cannot really disentangle the Brexit effect."

The most important area where Brexit effects became visible quickly was in the trade in goods. After stockpiling in December, the additional customs and safety checks that were introduced from January 1 caused trade to fall

Check the history on the topic
Vote to feature