UK Brexit costs more than $124 billion a year

UK: An analysis by Bloomberg Economics published on Tuesday claims that the UK economy is still losing billions of dollars annually as a result of Brexit.

According to the study, the British economy has been losing about £100 billion ($124 billion) annually since the country's 2020 exit from the EU and is currently 4% smaller than it might have been.

When the UK voted to leave the EU in 2016, did it engage in economic self-harm? It appears from the evidence thus far that it did. The single market exit may have affected the British economy more quickly than we or the majority of forecasters anticipated, according to economist Ana Andrade, who co-authored the report with Dan Hanson.

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The analysts claim that following the 2016 Brexit referendum, the UK's economic performance began to differ from that of the other G7 nations. According to them, the reason for this was a decrease in business investment because businesses had been spending very sparingly because of uncertainty about their futures outside of the single market. Calculations show that the UK's business investment stands at about 9% of GDP against the G7 average of 13%.

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The labour shortage, which affects the UK economy as well, is also attributed to Brexit, according to economists. According to their calculations, there are currently 370,000 fewer EU employees in the nation than there might have been had Britain remained in the union.

The economists stated that "labour scarcity adds to inflationary pressure in the short-term and limits potential growth further out." "With trend growth of just over 1%, that's not good news for an economy facing bleak long-term prospects."

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The economists noted that while trade has thus far been less significantly impacted by Brexit, "over the longer term, we would expect trade to bear the brunt of the impact of leaving the single market," they cautioned.

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