Europe

Studies predict that Brexit will cost UK workers £ 470 a year

Britain’s departure from the EU is making the UK a more closed economy, with long-term effects on productivity and wages, making the average worker £ 470 ($ 577) poorer a year by the end of the decade. Will do, according to a survey forecast on Wednesday.

The report was written by Swatidingla, an associate professor at the London School of Economics (who will join the Bank of England’s Monetary Policy Committee in August), and a researcher at the Resolution Foundation’s think tank.

The COVID-19 pandemic that occurred shortly after the UK left the European Union in January 2020 complicated the task of analyzing the effects of Brexit.

Researchers said the new post-Bregit trade rules, which came into force in January 2021, did not result in a sustained reduction in UK trade with the EU compared to the rest of the world.

“Instead, Brexit EnglandCompetitiveness and openness to trade with a wide range of countries. This will ultimately reduce productivity and reduce the real wages of workers, “said Sophie Hale, economist at the Resolution Foundation.

The UK does not face tariffs on the export of goods to the EU, but it does have greater regulatory barriers.

These net effects will reduce the productivity of the economy as a whole by 1.3% by 2030 compared to unaltered trade relations. In other words, the annual wage per worker is reduced by 1.8%.

These numbers do not include an assessment of the impact of modified migration rules.

The impact on some sectors is very serious. Britain’s small but well-known fishery could shrink by 30%, according to the report, as many of its members strongly support Brexit and it is difficult to export fresh catch to EU customers. There is sex.

In contrast, highly regulated professional services such as finance, insurance and law make it difficult to serve EU customers, but their share of the UK economy drops 0.3 percentage points to 20.2 percent. There is a possibility of becoming.

(Reuters)

https://in-cyprus.philenews.com/brexit-will-cost-uk-workers-470-pounds-a-year-study-predicts/ Studies predict that Brexit will cost UK workers £ 470 a year

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