New report finds Brexit is costing the economy £600 million a week
Steve Bray is protesting against Brexit every day outside Parliament (Photograph: PA) - 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.
Most Read
- 1 Would Javid have renamed ICU wards 'Drama Queen Zones'?
- 2 Rabbits defeat French army
- 3 The Spanish village with the mythical blue lagoon
- 4 Empty shelves are partly down to Brexit - but Leavers won't admit it
- 5 Has something shifted in sado-populist Britain?
- 6 Party politics will not save us from the Tories - we need drastic action
- 7 Ed Vaizey overtakes Paul Dacre in the Ofcom race
- 8 Priti Patel - the poster girl for our poisonous politics
- 9 Cost of Brexit is already 38 times more than the money set aside for levelling up
- 10 Boris Johnson: The sado-populist prime minister
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.
