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Brexit has reduced UK growth potential from 2.5% to 1.5%, with Governor Bailey citing reduced openness and AI risks.
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.
Speaking at the G30 seminar, he said reduced economic openness limits long-term growth, with short- to medium-term effects still adverse.
Bailey emphasized innovation, especially artificial intelligence, as key to boosting productivity, though he cautioned that inflated AI-related market valuations could threaten financial stability.
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.
El Brexit ha reducido el potencial de crecimiento del Reino Unido del 2.5% al 1.5%, con el gobernador Bailey citando la reducción de la apertura y los riesgos de la IA.