## United Kingdom: Selected Issues

_IMF Staff Country Reports, November 14, 2018_

## Source details

**Canonical URL:** [United Kingdom: Selected Issues](https://www.imf.org/en/publications/cr/issues/2018/11/14/united-kingdom-selected-issues-46354)

## Other formats

- [Markdown version](/en/publications/cr/issues/2018/11/14/united-kingdom-selected-issues-46354/index.md)
- [Structured JSON version](/en/publications/cr/issues/2018/11/14/united-kingdom-selected-issues-46354/index.json)
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## Bibliographic details
- Published: November 14, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484384596.002

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### Main objective and scenarios
- Estimates the long-run economic impact of Brexit on the United Kingdom under two distinct assumptions for the post-Brexit relationship between the United Kingdom and the European Union.
- The illustrative scenarios entail:
  - different degrees of higher trade costs,
  - a more restricted European Union migration regime,
  - reduced foreign inward investment.

### Methodology
- A standard multicountry and multisector computable general equilibrium model is used to quantify the impact of higher trade barriers.
- Empirical analysis of labor mobility across sectors is conducted to assess adjustment speed.

### Key findings
- There is substantial sectoral heterogeneity in the impact of Brexit.
- Regions with higher concentrations of the more affected sectors are likely to confront greater losses.
- The empirical analysis suggests the speed of sectoral labor relocation across sectors has been relatively low in the UK.
- Irrespective of empirical estimates of mobility, faster adjustment policies would reduce aggregate and individual costs.

### Policy implications and recommendations
- Policies to facilitate faster adjustment to the post-Brexit equilibrium are critical. Examples highlighted:
  - retraining to accelerate sectoral labor relocation and minimize associated costs to individuals and in aggregate.

### Publication metadata and identifiers
- Publication date: November 14, 2018
- Pages: 68
- Volume: 2018
- Issue: 317
- Series: Country Report No. 2018/317
- DOI: https://doi.org/10.5089/9781484384596.002
- Stock No: 1GBREA2018004
- ISBN: 9781484384596
- ISSN: 1934-7685

*Source: United Kingdom: Selected Issues (IMF Staff Country Reports), November 14, 2018.*

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## Content in this bundle

- **Country Report**
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_Source: https://www.imf.org/en/publications/cr/issues/2018/11/14/united-kingdom-selected-issues-46354_