As Labour regains power in the UK, it is useful to take stock of the Conservative governments’ exit from the European Union. The UK had retained its monetary policy independence, and therefore gained no room for maneuver in terms of monetary policy after leaving the European Union.
When we look at the various consequences of the UK’s exit from the European Union, we see:
- no drop in immigration, but a sharp rise from 2021;
- the absence of any impact on the savings rate, housing investment or foreign trade;
- a significant negative impact on business investment and foreign direct investment inflows.
It was the disappearance of access to the European single market for companies based in the UK that most penalized the British economy after the UK’s exit from the European Union.
