- Brexit had an impact on UK economy equivalent to pandemic, reducing output by 4%: OBR.
- Declining productivity, a shrinking workforce, and stagnant investment held back economic growth.
- UK struggling with tight labor market conditions with 600,000 fewer workers than before the pandemic.
- Real income to recover in next 3-4 years but people's real spending power won't return to pre-pandemic levels even after 5 years.
UK Economy 4% Smaller Because of Brexit, OBR’s Hughes Says
Brexit reduced UK's economic output by 4%, equivalent to the pandemic, due to declining productivity, shrinking workforce, and stagnant investment, constraining living standards.