Feb 3, 2023
BOE Chief Economist Suggests UK Yet to See Any Brexit Benefits
(Bloomberg) -- Bank of England Chief Economist Huw Pill suggested that the UK is yet to see any positive economic benefits from exiting the European Union.
Pill said that it “remains too early” to judge the full economic impact from Brexit but warned that there had not been any “offsetting effects” from a blow to trade and the labor force.
The BOE delivered a bleak assessment of the UK economy’s speed limit in its latest forecasts on Thursday. It downgraded its outlook on potential growth — the limit at which activity generates excess inflation. That reflected a drop in the size of the workforce and trade friction with the EU.
It estimated that by 2025 the UK will only be able to grow by 0.7% a year, a sharp slowdown from the 1.7% rate in the 2010s. Asked on Times Radio whether he had heard any evidence of Brexit being an economic benefit to the UK, Pill replied:
“In those types of channels as modeled by the bank in the work we’ve published on that do suggest that that has weighed on the supply potential of the economy,” he said, referring to how trade and migration after Brexit are affecting the economy.
“I think as yet we have not seen offsetting effects, at least here in net terms in the other direction.”
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