The surging cost of Brexit for the UK
January 21, 2020 - Brexit may soon cost the United Kingdom in lost economic growth almost as much as its total payments to the European Union budget over the past 47 years, according to Bloomberg Economics.
An analysis by economist Dan Hanson for Bloomberg has found that since the June 2016 referendum on leaving the European Union, the UK’s economic growth has lagged behind that of other G7 countries.
Hanson, a former Treasury economist, estimates the British economy is three per cent smaller than it might have been if the UK had not voted to leave the EU.
Bloomberg Economics has found that those economic losses due to Brexit reached £132 billion by the end of 2019, and will top £203 billion by the end of this year.
By comparison, a briefing paper by Mathew Keep for the House of Commons Library puts the UK’s total projected contribution to the EU budget from 1973 to 2020 at £215.6 billion after adjusting for inflation.
“As the UK comes to terms with its new trading relationship with the EU and grapples with the productivity challenge that has hindered growth since the financial crisis, the annual cost of Brexit is likely to keep increasing,” Hanson concludes.
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