CURRENT AFFAIRS

Detailed explanation-1: -Key Takeaways. Brexit refers to Britain’s exit from the European Union.

Detailed explanation-2: -The desire to pursue a ‘hard’ Brexit has resulted in a major increase in trade barriers and trade costs in goods and services, as well as new restrictions on migration flows. The costs of Brexit so far also appear to be unevenly distributed, with areas that voted most heavily for Brexit the worst affected.

Detailed explanation-3: -Brexit had reduced GDP by 5.5%, investment by 11%, and goods trade by 7% in the second quarter of 2022. For a detailed explanation on the method used to make these estimates, please read the appendix of the last update.

Detailed explanation-4: -The Brexit/trade agreement led to a change in duty and in VAT. For instance, EU buyers of British-made items now pay their national VAT rather than the (previously applicable) British one. Products sold by British vendors but made (for example) in China may be subject to additional import duties.

Detailed explanation-5: -Brexit has erected trade barriers for UK businesses and foreign companies that used Britain as a European base. It’s weighing on imports and exports, sapping investment and contributing to labor shortages. All this has exacerbated Britain’s inflation problem, hurting workers and the business community.