So much for the land of milk and honey promised by Brexiteers.
Yet another study shows that Brexit has severely damaged the UK economy, as the evidence of the economic harm done by the decision to leave piles up.
According to the National Bureau for Economic Research (NBER), which has based its findings on a decade of data since the referendum, the UK’s GDP (Gross Domestic Product) had fallen by as much as 8% from where it should be since 2016.
The NBER says that increased uncertainty and reduced demand following the decision to leave had an adverse effect on the UK economy. It states: “We estimate that investment was reduced by between 12% and 18%, employment by 3% to 4% and productivity by 3% to 4%. These large negative impacts reflect a combination of elevated uncertainty, reduced demand, diverted management time, and increased misallocation of resources from a protracted Brexit process.”
It comes after another report last week which found that UK business investment is 12 to 18 per cent lower than it would have been if Britain had stayed in the EU.
New data released by the economists at Stanford University, the Bank of England, and the National Institute of Economic and Social Research has found that business investment loss by this year could be £275 billion or £400 billion.
So much for the land of milk and honey promised by Brexiteers.
Basit Mahmood is editor of Left Foot Forward
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