Ten years on, Brexit's economic impact is becoming clearer

A decade ago, many economists argued the UK would sustain longer-term economic damage by leaving the EU. So what did happen?

Eskimo, a Bristol-based firm, developed a new kind of high-fashion and energy-efficient electric radiator based on technology from local academics. The company planned to export these products to the EU, but Brexit led to increased costs and regulatory hurdles. According to Eskimo's founder, the firm's exports to the EU decreased by 20% in the first year after Brexit. This decline was largely due to the additional administrative costs and tariffs imposed on UK exports.

The economic impact of Brexit is directly affecting the price of goods imported from the EU, with UK consumers facing higher costs due to tariffs and administrative fees. For instance, the price of a typical electric radiator imported from the EU has increased by around 15% since Brexit. This rise in costs is likely to affect households that rely on these products for heating. As a result, consumers may need to budget more for essential items.

The UK's decision to leave the EU was preceded by a referendum in 2016, in which 51.9% of voters chose to leave the EU. Prior to the referendum, many economists warned that Brexit would lead to economic damage, citing the potential loss of access to the EU's single market and customs union. Insiders knew that the UK's departure from the EU would lead to a significant increase in trade barriers, which would negatively impact UK businesses. The UK's economic performance since Brexit has been closely watched by economists and policymakers.

The UK's Office for Budget Responsibility is set to release a report on the economic impact of Brexit in the next quarter. The report is expected to provide a detailed analysis of the effects of Brexit on UK trade and economic growth. A key indicator to watch will be the UK's trade deficit, which has widened significantly since Brexit. Interestingly, some economists argue that the UK's economic performance since Brexit has been affected more by the COVID-19 pandemic than by the actual departure from the EU, with the pandemic masking the true extent of Brexit's economic impact.