New report finds Brexit is costing the economy £600 million a week
- Credit: Archant
Brexit has cost the British economy £600 million a week since the referendum - and a no-deal Brexit could hit the country even harder.
A new report published by investment banking giant Goldman Sachs suggests that since the June 2016 vote, nearly 2.5% has been shaved off GDP.
It argues that had UK voters opted to Remain, the economy would have been in a much stronger position, instead of underperforming and lagging behind other advanced economies.
Goldman's number crunchers concluded that investment has been one of the biggest casualties of the Brexit debacle, confirming official data which has shown it in decline.
'The component-level breakdown reveals that output losses have been concentrated in investment and private consumption.
You may also want to watch:
'The outsized impact on investment suggests that political uncertainty associated with the Brexit process may, indeed, be one of the major sources of the economic cost of Brexit,' the report read.
The report echoes a Bank of England analysis that suggested around £40 billion per year, or £800 million per week, of lost income for the country as a whole since the result of the leave vote.
- 1 These are the 322 Tory MPs who voted against extending free school meals to children
- 2 Question Time: Ex-Tory minister accused of making 'sickening' comment about free schools meals row
- 3 Betty Boothroyd delivers scathing assessment of Boris Johnson's government
- 4 Downing Street withholds praise for business and local authorities offering free meals to hungry children
- 5 Priti Patel bullying inquiry may never be released, hints Boris Johnson's new civil service boss
- 6 House of Lords defies No 10 and votes to heavily defeat Boris Johnson's Brexit bill
- 7 Priti Patel set to hand private firms £28 million in government contracts to deport asylum seekers from UK
- 8 Boris Johnson 'plans to resign' in six months because he can't live on £150k salary
- 9 German MEP tells Boris Johnson he 'owes' Britons a Brexit deal as she urged a return to EU trade talks
- 10 At the upcoming US election, Donald Trump really is toast
Goldman added that under a no-deal Brexit scenario, favoured by the most extreme Tory Brexiteers, the EU would also suffer.
It said: 'Under our 'no-deal' scenario, the UK suffers large output losses, in conjunction with a substantial global confidence shock marked by a sharp sterling depreciation. European countries would be most exposed to this scenario and could see output losses of around 1% of real GDP.'
Conversely, a 'status quo' Brexit transition deal would reverse part of the UK's output underperformance and, under a Remain scenario, the UK 'fully recoups Brexit-related output costs and business confidence rebounds'.
Become a Supporter
The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.