Bank of England Governor: The UK economy will gradually adapt to the impact of Brexit over time.

Jin10 data reported on October 18, the Governor of the Bank of England, Andrew Bailey, rarely spoke about Brexit during a speech in Washington. He pointed out that Brexit will have a negative impact on economic growth in the “foreseeable future.” However, he added that this impact will gradually diminish over time. In a speech about the effects of supply shocks, Bailey stated: “When the openness of an economy decreases, growth will also be suppressed. However, in the long term, trade will gradually adjust and regain vitality. And this seems to be the situation we are experiencing.” Bailey noted that Brexit is one of a series of supply shocks leading to a slowdown in economic growth, along with others such as the COVID-19 pandemic, the Russia-Ukraine conflict, increased tariffs from the United States, and deeper supply shocks brought on by an aging population and weak productivity. He stated that the UK's potential economic growth rate has decreased from 2.5% per year over the previous 20 years to 1.5% over the past 15 years, which has also put pressure on public finances.