Impact of EU-UK trade agreement on GDP by 2022

In December 24, 2020, the European Union and the United Kingdom signed the EU-UK Trade and Cooperation Agreement (TCA) after years of negotiations following the Brexit decision of June 2016. According to the winter economic forecast published by the European Commission, the impact of the trade agreement on the United Kingdom's gross domestic output (GDP) is predicted to lead to a loss of about 2.25 percent by the end of 2022. This was lower than the previous forecast, which was based on a no-deal scenario trading under WTO terms. The impact of the trade agreement on the EU's GDP is forecast to be significantly lower at about 0.5 percent.