Brexit impact on UK economy will be negative for foreseeable future, Bailey warns
Bank chief warns of lasting economic growth drag from Brexit
- Bank of England Governor Andrew Bailey warned that Brexit will negatively impact the UK's economic growth for the foreseeable future.
- Speaking at the G30 40th annual International Banking Seminar, Mr Bailey linked a decline in potential growth to lower productivity, an ageing population, and post-Brexit trade restrictions.
- He noted that while the immediate impact is negative, the economy is expected to adjust and rebalance in the longer term, citing Adam Smith's growth model.
- Mr Bailey suggested that investment in innovation and new technologies, particularly AI, offers the best hope for addressing the long-term decline in productivity.
- His comments come amidst recent muted UK GDP growth figures and an International Monetary Fund forecast predicting high inflation for the UK in 2025 and 2026.