Brexit: 10 years later – Christina Carlsten’s analysis on RTS’s Journal de 8h

Brexit: what is the economic verdict 10 years later?

Ten years after the historic referendum that led the United Kingdom to leave the European Union, the economic consequences of Brexit continue to be felt. While the 2016 vote was driven in part by a desire to regain control over borders, regulations and economic policies, the economic picture remains mixed today.

According to several estimates, Brexit has reduced the country's growth potential and weighed on investment, trade and labour availability in key sectors of the British economy.

Speaking on RTS's Journal de 8h, Christina Carlsten, Analyst and Fund Manager at Piguet Galland, reviewed the main effects of Brexit a decade after the vote. 

Sectors facing labour shortages

The end of free movement between the United Kingdom and the European Union has affected several sectors that relied heavily on European workers.

“We are, of course, talking about agriculture and fisheries, but also hospitality and catering, as free movement came to an end. Employers could no longer hire European citizens as easily, which created labour shortages.” 

The City proved more resilient than expected

Before Brexit came into force, many observers feared that London’s financial centre would lose significant business to other European financial hubs. However, the shift in activity was ultimately more limited than anticipated.

“The City was often portrayed as a major loser. There has certainly been a relocation of some activity to Paris, Frankfurt and Ireland, but it has been much less significant than many had feared.”

A tangible impact on households

The consequences of Brexit extend beyond businesses. British households have also faced a number of economic challenges. The depreciation of sterling has increased the cost of imports and overseas travel, while rising interest rates have put pressure on household purchasing power.

“Borrowing has become much more expensive. In the UK, many mortgages are on variable rates, so consumers can find themselves in a very difficult position.” 

 🎧 Listen to Christina Carlsten’s intervention (French only)
(from 02:57)