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flag Brexit has reduced UK growth potential from 2.5% to 1.5%, with Governor Bailey citing reduced openness and AI risks.

flag Bank of England Governor Andrew Bailey warned Brexit will continue to hinder the UK’s economic growth, citing a drop in potential growth from 2.5% to 1.5% over 15 years due to post-Brexit policies. flag Speaking at the G30 seminar, he said reduced economic openness limits long-term growth, with short- to medium-term effects still adverse. flag Bailey emphasized innovation, especially artificial intelligence, as key to boosting productivity, though he cautioned that inflated AI-related market valuations could threaten financial stability. flag His remarks follow mixed economic data, including a revised GDP contraction in July and a modest 0.1% rise in August, with the IMF forecasting higher UK inflation than other G7 nations in 2025 and 2026.

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