“The evidence points to a significant long-run output cost of Brexit,” the economists at Goldman’s wrote.
Yet more evidence has emerged of just how disastrous the decision to leave the EU has been for the UK economy, with economists at Goldman Sachs group saying that real GDP has underperformed by about 5%.
In a research note published earlier this month, Sven Jari Stehn and colleagues said that Brexit had resulted in reduced growth and higher inflation, with ‘reduced international trade, weak business investment and a drop in migrants coming from Britain’s largest trade partner all contributing’, Bloomberg has reported.
It comes as a number of studies have warned of the harmful consequences of Brexit, with the Bank of England saying last year that the decision to leave the EU has cost the average UK household £1,000, due to a lack of investment following the referendum.
“The evidence points to a significant long-run output cost of Brexit,” the economists at Goldman’s wrote. “The UK has significantly underperformed other advanced economies since the 2016 EU referendum”, they said.
The economy continues to struggle, with official figures last week confirming that the UK had entered recession, in a further blow to Rishi Sunak who had made ‘growing the economy’ one of his five key pledges to voters when he took office.
Basit Mahmood is editor of Left Foot Forward
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