Brexit's Impact on the UK Economy
Britain is decreasing its dependence on EU markets.
- The U.K. joined the EU after losing its empire, a time when it needed new markets for its exports.
- Britain’s EU membership led to changes in the country’s economic structure. Since the 1980s, the British economy has become increasingly dependent on its services sector while the importance of industry, in particular manufacturing, has diminished.
- The U.K. is the second largest exporter of services in the world after the U.S., and U.K. service exports to non-EU markets have exceeded those to the EU since before the 2008 economic crisis.
- Although the British Empire is gone, historical links still exist, and the U.K.’s exports to other Commonwealth countries have grown as intra-Commonwealth trade has outpaced Commonwealth countries’ trade with the rest of the world.
- The U.K.-U.S. relationship remains paramount for London because the U.S. is Britain’s primary market and the U.K. needs the U.S. to secure its exit strategy from the EU as it seeks new markets worldwide.