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Manufactured goods industry to be hit the hardest over a no-deal Brexit

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Theresa May announced that she was stepping down as the British prime minister after almost two years in office. This step has potentially increased the likelihood of a no-deal Brexit. In view of the current political situation, Statista has now extended all UK Industry Reports to include exclusive Brexit analyses.

It has been almost three years since 52% of voters voted for the UK to leave the European Union after David Cameron failed to renegotiate the relationship between the UK and the EU. If all had gone to plan, Brexit should have taken place two years after Article 50 was triggered, i.e. in March this year, but this did not happen.

After three attempts at getting the withdrawal agreement ratified by the House of Commons, failed negotiations with the Labour party, and disagreements within her own party, Theresa May announced her resignation as prime minister and Conservative Party leader.

This potentially increases the risk of a no-deal Brexit: Many of the candidates touted to succeed May support a no-deal Brexit over remaining in the EU, with former Foreign Secretary Boris Johnson considered the favourite.

A no-deal Brexit would have far-reaching economic consequences for the UK. According to exclusive analyses carried out by Statista, the manufactured goods industry would be hit the hardest by a chaotic Brexit: The gross value of the industry would decrease by 12% over the next 15-years.

The agriculture & foods industry would experience a loss of 11%, the financial services industry would decrease by 9% and the services industry by 8%. In case of a no-deal scenario, the highest tariffs are likely to be imposed on agriculture & foods, they are expected to amount to almost 20%.




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