The 2 causes that are depressing UK economy are the mismanagement of the Covid 19 pandemic and Brexit. Moreover, UK Prime Minister Boris Johnson does not know what to do. He has no time to comb his hair. His left leg is

standing on a piece of soap and his right leg on slippery slope.

As shown on the graph below the UK economy falls behind G7 pack again.

Britain's economic recovery from the coronavirus pandemic lagged behind that of other rich nations in the July-September period, according to official data on Thursday which underscored the interest rate dilemma facing the Bank of England.

Gross domestic product grew by 1.3%, the weakest three-month growth since Britain was under lockdown in early 2021. The Office for National Statistics said Britain's economy remained 2.1% smaller than it was at the end of 2019, a bigger shortfall than in fellow Group of Seven countries Germany, Italy and France.

Mismanagement of the Covid 19 pandemic.

UK has a total of 12.7 million Covid 19 cases and 148,000 deaths. UK has a population of 67.22 people. In UK 1 in every 5 British has contacted Covid19 virus. UK has the most Covid 19 cases per capita in the world.

US has a total of 53.7 million Covid 19 cases and 621,000 deaths. US has the most Covid 19 cases in the world. US has a population of 329.5 million. In USA 1 in every 6 Americans has contacted Covid 19 virus.

Malaysia has a total of 2.75 million Covid 19 cases and 3,428 deaths. Malaysia has a population of 33.45 million. In Malaysia 1 in every 12 Malaysians has contacted Covid 19 virus.

The graph below shows that on 30 Dec there were 188,124 new Covid 19 cases and the 7-day average is 139.733 cases. The number of daily new cases is surging especially during the current festive season. This pandemic will continue to depress UK economy. 

How has Brexit affected the UK economy?

The impact of Brexit on the UK economy will be worse in the long run compared to the coronavirus pandemic, the chairman of the Office for Budget Responsibility has said. Richard Hughes said leaving the EU would reduce the UK's potential GDP by about 4% in the long term.

UK leaving the EU would lose the advantage of a much larger market. Moreover, UK would lose the Advantages of Free Trade.

1. Free trade creates economic growth opportunities.
When countries can freely move products across borders, then each nation gets to take advantage of the manufacturing, commercial, and industrial strengths of every other economy in the agreement. That means there are lower cost burdens to worry about with each transaction, prices stay lower, and there can be healthy competition in the market.

2. There are more opportunities for foreign direct investment.
When nations remove the barriers that are in place for free trade, then more companies are willing to invest in other countries. There are new investments, partnerships, and opportunities that develop because of this approach in markets of any size. That means you can focus on creating deeper, more fulfilling relationships with other governments who share the same perspective of the world today. Countries with shared borders can promote a better standard of living because it is harder to go to war with someone who is your economic partner.

3. It lowers the taxes that consumers and businesses pay.
The inclusion of tax and investment protection in free trade agreements make it possible to guard the interests of local business owners more efficiently. When these safeguards disappear, then the result tends to favour the consumer because more competition from global agencies can happen at the level of consumption.

This advantage reduces stagnation within markets, though at the risk of eliminating smaller businesses from the equation. Lower assessments and fewer restrictions to entry can also reduce pricing for customers.

4. Fewer government expenditures occur because of free trade.
Several domestic industries receive financial benefits from the government, including farming and other areas of agriculture. This money goes from the taxpayer to the producer as a way to counter the impact that tariffs have on the import and export markets.

By injecting new best practices and creating new competencies into the domestic delivery systems, less government money is necessary to keep prices affordable at the local level. This advantage means that the tax revenues can go toward infrastructure needs, social programs, defence, or other community requirements without keeping unprofitable business ventures afloat.

5. It creates better goods.
When free trade occurs, then each market receives more access to higher-quality goods at lower prices. Cheaper imports help to ease the pressure of inflation in UK. That means the average UK household has more money to spend on other products. The requirement of innovation here means that businesses are constantly finding ways to solve problems for consumers.

6. Free trade involves more than just consumer goods.
This advantage also promotes economic growth because it diversifies the supply chain for an organization of any size. Even micro-businesses, freelancers, and gig specialists can benefit from this advantage because the Internet provides immediate access to cheaper goods, new research, and service expansion opportunities.

7. It helps the people who have the least amount of money to spend.
Some people believe that more wealth can only come when a country can export more of its goods or services to other nations. The economic reality of free trade is that it is the total level of imports and exports that accurately reflects prosperity. When the people at the lower tier of the national income levels have more money to spend, then the entire economy benefits. That’s why the removal of tariffs is such an integral part of this process.

8. Free trade creates more opportunities to solicit workers with expertise.

UK could have got a lot more cheaper workers from EU.
It also gave companies the chance to find workers from almost anywhere in the world with the right levels of expertise. By looking to foreign markets for this help, the costs stay down for the manufacturing process to maintain pricing at competitive levels.

This advantage also means that multiple economies around the world can benefit from this approach.

9. Experts get to have access to the most resources with free trade.
Free trade agreements attempt to put the most opportunities into the hands of the people who can create successful outcomes. There are no border restrictions to this advantage. That’s why anyone can become whatever they want to be in life if they have access to an economy built on this principle. The amount of competition that becomes available is the primary driver of what local populations think is possible. Anyone can become what they want to be in life if they work hard enough to reach their goals thanks to the fewer economic restrictions that exist with this opportunity.