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Brexit Threatens UK Growth, Bailey Urges AI Investment

10/19/2025

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Bank of England Governor Andrew Bailey warned that Brexit will continue to dampen the UK's economic growth.
He said potential growth could fall from 2.5% to 1.5% in 15 years due to lower productivity, an ageing population, and trade restrictions.
Bailey emphasized investment in innovation, particularly artificial intelligence, to counteract these challenges.
This comes as Chancellor Rachel Reeves faces pressure ahead of the budget amid stagnant growth and rising inflation.

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Story summary

Bank of England Governor Andrew Bailey warned that Brexit will continue to dampen the UK's economic growth.
He said potential growth could fall from 2.5% to 1.5% in 15 years due to lower productivity, an ageing population, and trade restrictions.
Bailey emphasized investment in innovation, particularly artificial intelligence, to counteract these challenges.
This comes as Chancellor Rachel Reeves faces pressure ahead of the budget amid stagnant growth and rising inflation.