Brexit has cost the UK economy £600 million per week since the referendum in 2016 – and the country could be hit even harder if we leave without a deal.
A new report published by investment banking giant Goldman Sachs 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.
The analysis shows 2.5 per cent has been shaved off GDP since June 2016, with investment one of the biggest casualties of the Brexit debacle.
It echoes 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.
“The component-level breakdown reveals that output losses have been concentrated in investment and private consumption.
“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.
Under a no-deal scenario the UK will suffer large output losses, as well as a “substantial global confidence shock marked by a sharp sterling depreciation”.
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”.
Since you are here
Since you are here, we wanted to ask for your help.
Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.
Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.
If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.
To donate or subscribe to The London Economic, click here.
The TLE shop is also now open, with all profits going to supporting our work.
The shop can be found here.
You can also SUBSCRIBE TO OUR NEWSLETTER .