GDP | Bloomberg: Britain is now paying a heavy price for Brexit, economists say

Britain’s the decision to leave the European Union inoculated the economy by slowing growth and accelerating inflation, according to economists at the investment bank Goldman Sachs news agency Bloomberg by.

In a study on the subject, economists compared the British economy to other countries. Britain’s gross domestic product (GDP) has developed five percent weaker than in other countries of the same type, stated Sven Jari Stehn with research colleagues.

According to the researchers, this has been influenced by the weakening of international trade, weak investments by companies and the decrease in immigrants from Britain’s largest trading partner.

“Evidence points to significant long-term output costs of Brexit,” the researchers wrote, according to Bloomberg. “Britain has fared significantly worse than other advanced economies since the 2016 EU referendum.”

Goldman’s the conclusion is largely in line with other assessments of the effects of Brexit.

Britain’s official fiscal watchdog said last year that Britain’s departure from the EU was likely to reduce industrial and service output by 4 percent. Member of the Bank of England’s Monetary Policy Council Jonathan Haskell said a year ago that Brexit cost each British household on average about £1,000 (about €1,170).

Still, the researchers noted that not all of the problems in the British economy can be explained as caused by Brexit. According to Bloomberg, the report refers to the coronavirus pandemic and the energy crisis caused by Russia’s war of aggression.

Some economists, especially those in favor of leaving the EU, have opposed the method of comparing with other countries. Like the British government, they also point out that Britain’s GDP has been better than Germany and Italy.

Prime minister Rishi Sunak promised to grow the economy when he took office at the end of 2022. He has had trouble keeping his promise.

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