♦️ After more than five years of separation from the European Union, Britain is entering a new phase of rapprochement with its most important trading partner. The summit on May 19 in Brussels marked a turning point in economic relations between the two sides, in an attempt to mend the rift caused by Brexit in the British economy, as its repercussions have left clear marks on inflation rates, investment, and productivity
♦️ The European Union remains Britain's largest and geographically closest market, accounting for 47% of total British goods exports in 2024 by value, a percentage that has remained stable since 2019
♦️ However, behind this apparent stability lie sharp declines in the volume of actual exports (in quantities) both to Europe and to the rest of the world. A decrease in quantities by 18% between 2019 and 2024 reflects the effects of Brexit, but it also indicates a gradual loss of competitiveness for British industries against global competitors, especially from Asia
♦️ The most affected sectors were fuel and derivatives (down 24%) and machinery and equipment (down 5.3%)
