'Productivity is also down as a result of Brexit, along with a ‘permanent reduction in the willingness to invest’ in the United Kingdom'
Brexit has had a disastrous impact on the UK economy and could leave each person up to £2,300 worse off, new data has suggested.
The decision to leave the EU has had a major impact on UK economic performance, with the
OBR estimating that the economic hit caused by Brexit to the UK economy will mean GDP is reduced by 4%.
Now new data from the National Institute of Economic & Social Research (NIESR), shows that UK GDP is estimated to be 3% lower as a result of Brexit.
Britain’s oldest independent economic research institute, the NIESR, also says that the average British citizen is now £850 worse off as a result of the decision to leave the EU.
The group also highlighted that productivity is also down as a result of Brexit, along with a ‘permanent reduction in the willingness to invest’ in the United Kingdom.
The body stated: “Our estimates further suggest that three years after the transition period, UK real GDP is some 2-3% lower due to Brexit, compared to a scenario where the United Kingdom retained EU membership. This corresponds to a per capita income loss of approximately £850.”
“Furthermore, our estimates also indicate that the negative impact of Brexit gradually escalates, reaching some 5-6 per cent of GDP or about £2,300 per capita by 2035. Overall, the UK has experienced slower economic growth… following its exit from the European Union.”
The findings come at a time when the demand to reverse Brexit is at its highest level. A poll last month from WeThink, affiliated with Omnisis, showed that 63% of those surveyed believe that the UK should now reverse the referendum result, and return to its previous trading relationship with the bloc. Just 37% of voters want to stay out of the EU.
Basit Mahmood is editor of Left Foot Forward