The latest World Competitiveness Ranking (WCR) has placed the UK as the 24th most competitive global economy in 2026, with Brexit<\/a> serving as one major factor in its position.<\/p>\n The rankings, published annually by the IMD Business School in Switzerland, assess countries based on their economic performance, government efficiency, business efficiency and infrastructure.<\/p>\n The report\u2019s lead author, professor of finance Arturo Bris, told The Independent the UK\u2019s performance in the rankings had dropped since leaving the EU<\/a>.<\/p>\n He said the UK used to rank in the top 20 before Brexit but that the country now sits consistently in the middle of the rankings.<\/p>\n \u201cThe impact of Brexit has been seen on different fronts,\u201d he said, citing a lack of market exposure compared to the rest of Europe and weaker foreign investment in the country.<\/p>\n We are campaigning to rebuild Britain’s relationship with Europe. Join us here<\/a><\/p>\n The report states Britain\u2019s economic performance remains a \u201cweak spot\u201d, having reached its lowest point in five years. Britain\u2019s current account deficit sits at -3.13 per cent of GDP and inward investment flows rank just 66th.<\/p>\n The study suggests figures reflect \u201cpost-Brexit friction reducing the UK\u2019s attractiveness as a European investment gateway\u201d.<\/p>\n Office rent and high living costs have also contributed to Britain\u2019s low ranking.<\/p>\n \u201cNormally we see cost-of-living as a price to pay for competitiveness… but in the case of UK, it shows fragmentation of the UK economy between London and the rest of the country,\u201d Professor Bris added.<\/p>\n The study finds that the impact of Brexit is \u201cvisible throughout the data\u201d, which reveals a \u201cstark investment gap\u201d.<\/p>\n Britain ranks 69th for Inward Foreign Direct Investment, suggesting \u201cBrexit has played a role in eroding the UK\u2019s appeal as a European investment platform\u201d. <\/p>\n It also finds that Britain\u2019s goods exports as a percentage of GDP rank 64th, reflecting the potential friction of new customs arrangements with the EU, the UK\u2019s largest trading partner.<\/p>\n Meanwhile, the weakened pound and elevated long-term unemployment \u201call point to structural economic damage that has not yet been fully repaired,\u201d the study suggests.<\/p>\n However, Professor Bris added Britain had benefitted from Brexit in some ways, as it was protected from Donald Trump\u2019s major tariff reform in 2025.<\/p>\n \u201cA positive draw has been that the tariff war hurt European countries severely,\u201d he said \u201cThe UK has been shielded from that.\u201d<\/p>\n Meanwhile, new research shows Brexit has damaged UK exports to the EU by 12 per cent.<\/p>\n Research seen by The Guardian has found goods exports to the bloc are 16 per cent lower than they would have been, while services sector exports are 7 per cent lower.<\/p>\n John Springford and Anton Spisak, of the Centre for European Reform, said the data shows the \u201coverwhelming majority\u201d has been caused by leaving the single market.<\/p>\n \u201cThe regulatory costs related to Brexit \u2013 such as new certification procedures and checks for compliance with EU standards \u2013 have had a much more significant impact on UK-EU trade than customs-related barriers,\u201d they told the paper.<\/p>\n The prime minister, who has announced a second EU-UK summit will take place in Brussels on July 22 to make progress on his reset with the bloc, has previously vowed not to return to freedom of movement, a customs union, or the EU single market.<\/p>\n The date for the EU-UK summit was announced as Sir Keir met the EU\u2019s leaders in the margins of the G7 summit in Evian-les-Bains, France, where he said Britain would be at the \u201cheart of Europe\u201d under his reset plans.<\/p>\n A youth mobility deal, allowing British and EU member state citizens under 30 to live, work and study in each other\u2019s countries, is set to be agreed at the gathering.<\/p>\n Join the community<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/06\/preview.jpg\")
The study finds that the impact of Brexit is \u2018visible throughout the data\u2019, which reveals a \u2018stark investment gap\u2019 (AP)<\/p>\n![\"Britain](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/06\/4tsehrdygmfds.jpeg\")
Britain ranks 69th for Inward Foreign Direct Investment, suggesting \u2018Brexit has played a role in eroding the UK\u2019s appeal as a European investment platform\u2019 (AFP\/Getty)<\/p>\n