The Brexit economy: light at the end of the tunnel?

After progress in EU talks sterling has strengthened, inflation is falling and pay is rising. But sharp challenges remain

"How has the Brexit vote affected the economy? March verdict
" Experts debate the data

As the one-year countdown to Brexit looms, the British economy is showing signs of steadying from the fallout triggered by the EU referendum, according to a Guardian analysis of economic news over the past month.

After progress with Brussels towards a two-year transitional deal to smooth Britain's formal exit from the EU on 29 March 2019, the pound has risen back towards the highest levels seen since the leave vote.

Related: 'There is progress but we could do better' - experts debate Brexit watch data

A hard Brexit would take Britain out of the EU's single market and customs union and ends its obligations to respect the four freedoms, make big EU budget payments and accept the jurisdiction of the ECJ: what Brexiters mean by "taking back control" of Britain's borders, laws and money. It would mean a return of trade tariffs, depending on what (if any) FTA was agreed. See our full Brexit phrasebook.