[News Terms] The UK's 'Bregret'

Regret Over EU Exit Spreads Amid Economic Recession
IMF Forecasts "Only G7 Country to Contract This Year"

'Bregret' is a neologism meaning regret over the United Kingdom's 2016 withdrawal from the European Union (EU), known as Brexit. The term combines 'Brexit' and the word 'regret.'

In 2016, the UK held a referendum on Brexit, deciding to leave the EU with 51.9% approval, and officially separated from the EU in January 2020. However, the UK has not been able to escape a severe economic downturn since Brexit.

Exterior view of the Bank of England (BOE) located in London, England.
[Photo by London EPA/ Yonhap News]

The value of the British pound has plummeted, import prices have surged, and corporate costs have increased. Rising inflation has intensified the cost of living burden, and restrictions on foreign labor inflows have led to the worst economic conditions. The much-anticipated trade negotiations with the United States, expected to be Brexit's biggest achievement, have also seen little progress.

Actual economic indicators for the UK are bleak. The Bank of England (BOE) estimated that the productivity loss due to Brexit amounts to 1.3% of the UK's gross domestic product (GDP), with total losses estimated at ?29 billion (approximately 48 trillion KRW), equating to about ?1,000 (approximately 1.7 million KRW) per household.

Consumer prices rose 11.1% year-on-year in October last year, breaking a 40-year record and continuing a double-digit surge before easing to 6.8% in July. However, this remains significantly higher than the Eurozone's 20 countries (5.3%) and the United States (3.2%).

The UK Office for National Statistics (ONS) announced that the UK's GDP shrank by 0.5% month-on-month in July, marking negative growth. In response, Goldman Sachs and JP Morgan lowered their UK growth forecasts for this year by 0.2 percentage points each. The International Monetary Fund (IMF) also issued a grim forecast that the UK would be the only G7 country to experience negative growth (-0.6%) this year.

As a result, the sentiment of 'Bregret' is spreading among Britons. A YouGov poll conducted in July surveying over 2,000 Britons found that 57% believed the Brexit decision was wrong, reaching a record high. More than half (51%) supported rejoining the EU, while only 32% opposed it.

Given this situation, Keir Starmer, leader of the UK's main opposition Labour Party, stated in an interview with the Financial Times (FT) on the 17th (local time) that if his party wins the next general election in 2025, they will significantly revise the Brexit agreement.

Starmer said, "The UK-EU trade agreement negotiated by former Prime Minister Boris Johnson is scheduled for review in 2025, and now is the most critical moment to reset relations," adding, "We will strengthen UK economic growth through close trade relations with the EU and new partnerships with businesses." Europeans view the UK's indication of revising the trade agreement with the EU again with disfavor.

This content was produced with the assistance of AI translation services.