The impact of Brexit on UK-EU trade is growing

Significance

UK imports from the EU were consistently weak throughout 2021 and were outperformed by imports from non-EU countries, while exports to EU and non-EU countries were at around the same level. Northern Ireland was one of the United Kingdom’s better performing economic areas in 2021. The impact of Brexit on services will become more apparent in 2022 as businesses return to pre-pandemic levels of activity.

Impacts

• Business confidence in EU-UK trade will continue to suffer amid persistent uncertainty about relations between Brussels and London.
• Any agreement over the Northern Ireland protocol could take a long time to implement.
• The Brexit effect could increase UK trade dependency on China, which would face resistance from many in the ruling Conservative Party.