It has been ten years since Britain chose to leave the European Union, and the country is still feeling the effects of this decision. The Brexit referendum, which took place on June 23, 2016, marked the start of a long and complicated process that has led to economic upheaval and uncertainty.

Economic Impact

The UK’s decision to leave the EU has had a significant impact on its economy. According to economists, the country’s economic growth potential has been reduced by 2-8% since Brexit. This has resulted in lower business investment, decreased productivity, and a decline in living standards.

A senior adviser at Oxford Economics, Michael Saunders, stated that Brexit has been a constant drag on the economy, reducing the level of gross domestic product and prompting tax hikes and spending cuts. Even a Leave-supporting economist, Julian Jessop, acknowledged that the initial impact of Brexit has been negative, although he believes the costs will fade over time.

Trade and Investment

The UK’s trade with the EU has been significantly affected by Brexit. New trade deals with countries such as Australia, New Zealand, and Japan are trivial compared to the UK-EU trade, which was worth £856 billion last year. The decline in trade has been particularly noticeable in the goods sector, with UK goods exports tumbling relative to other major economies since 2016.

However, the services sector has continued to grow, with Britain remaining the world’s second-largest exporter of services. The City of London has maintained its position as a global financial center, attracting significant foreign direct investment into financial services.

Future Prospects

Despite the challenges posed by Brexit, few UK business leaders or politicians advocate for reversing the decision and rejoining the EU. The issue remains highly divisive, and rejoining would generate further uncertainty for companies that are still adapting to the new trading relationship.

Instead, the UK and EU have been working to forge closer ties in areas such as security and defense. There is also hope for future deals in other areas, such as food products. However, the UK will struggle to replace the access to a market of almost half a billion consumers that it had as an EU member.

Original reporting: KTVZ (Central Oregon) — read the source article.