Hughes said that the UK’s exit from the European Union would have a long-term impact of about 4 per cent on gross domestic product, while the impact of the Corona epidemic would be 2 per cent.
What is GDP?
Gross Domestic Product or Gross Domestic Product is one of the most important ways to show how well or poorly an economy is doing. It is a measure – or an attempt to measure – of all the activities of firms, governments, and individuals in an economy.
In a growing economy, quarterly GDP will be slightly higher than the previous quarter, a sign that people are doing more work and getting richer on average. If GDP falls, the economy will contract.
The pandemic and Brexit have both played a role in the UK’s current supply chain problems. In addition, the scarcity of truck drivers is now more exposed, resulting in recent shortages of corporate products and empty shelves in supermarkets.
However, in the latest OBR report, the independent body says supply bottlenecks have been exacerbated by changes in immigration and trade regulations after Brexit. Supply problems have caused the government to grant short-term visas to EU workers in certain sectors, including the transport sector.
The Balance Sheet Office raised its growth forecast for the British economy this year to 6.5 per cent, compared to 4 per cent earlier. The forecast for the long-term impact of the Corona epidemic on GDP has been reduced to 2 percent, from 3 percent previously.
The UK voted to leave the European Union in 2016 and officially left the trade bloc on January 31, 2020, but both sides agreed to keep many things as they are until December 31, 2020, before announcing and implementing a new trade deal on January 1 this year. .
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