Stories

Thu, 18 Jun 2026

Thu, 18 Jun 2026 Brexit cost 6% of UK economy, Bank of England company data suggests

Analysis showed how much the UK could have grown if it had not exited the EU.

* UK economy took a 6% hit from Brexit effects
* Half of the impact came from uncertainty after the referendum, and half from rising trade barriers after the UK left the EU customs union in 2021
* The study analyzed data from thousands of British companies to estimate how the UK would have grown if it had not voted to leave the EU
* Critics say the study does not fully account for outperformance of US investment and tech industries, or European energy shock four years ago
* Bank of England governor Andrew Bailey said Brexit reduced export markets, leading to lower economic growth and productivity
* The impact on financial services was "not good" but "nowhere near as detrimental as many people predicted"
* The study used company data alongside five traditional analysis methods, with an average estimate of 8% hit over 10 years