• The article discusses the effects of Brexit on the UK economy.
• It focuses on areas such as trade, investment and labour markets.
• It also looks at how Brexit could affect the country in terms of productivity and growth.


The article discusses the impact of Brexit on the UK economy, focusing on aspects such as trade, investment and labour markets. It examines how this major political event could potentially affect productivity and growth in Britain.


The UK has a strong international trading network which is set to be affected by Brexit. The UK’s exports to EU countries are expected to fall due to higher tariffs, while imports from non-EU countries may become more expensive due to instability in global markets. This could lead to a decrease in economic activity and an overall reduction in GDP growth for the country.


Brexit could have an effect on foreign direct investment into the UK, with investors being more hesitant about investing due to increased uncertainty surrounding future trade deals. This would result in reduced capital inflows and lower levels of economic activity over time.

Labour Markets

The labour market is likely to experience disruption due to changes in immigration policies associated with Brexit. This may lead to a shortage of skilled workers or an increase in unemployment as businesses struggle with hiring new staff or retaining existing ones due to restrictions on freedom of movement within Europe.

Productivity & Growth

In terms of productivity, it is expected that there will be an initial drop following Brexit but then some recovery over time as businesses adjust their operations accordingly. As for economic growth, it is highly uncertain what will happen but it is likely that there will be a slowdown compared with pre-Brexit trends due to decreased consumer confidence and investment flows into the country caused by increased uncertainty surrounding future trade deals post-Brexit .


Overall, Brexit has significant implications for the UK economy which can be observed across multiple areas such as trade, investment and labour markets; each having its own set of impacts upon productivity and growth going forward into 2021 and beyond.