Economics

U.K. Economy Still Faces Trade Pain After Dodging No-Deal Brexit

Agreement with EU averts worse damage at end of transition
Manufacturers avert trade levies, but no services safety net

WATCH: The U.K. faces new frictions which will hamper economic growth over the next decade, according to Bloomberg Economics.(Source: Bloomberg)

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By David Goodman and Lucy Meakin

December 24, 2020 at 5:30 PM UTC

This article is for subscribers only.

Britain averted the damage of a complete breakdown in formal trade ties with the European Union, but it’ll still confront the biggest reset of an advanced economy’s commercial relations since World War II.

The 11th-hour pact clinched by Prime Minister Boris Johnson on Thursday allows the final phase of Brexit to proceed with a relatively orderly divorce on Jan. 1.