Financial Times: The Real Price of Brexit Emerges

Brexit supporters had suggested that Britain, by leaving the European Union, would have more money to invest in health care. Most economists at the time suggested the opposite was true, and updated analysis confirms the bad news: Britain can expect an annual GDP loss between £20 billion and £180 billion. The 2017 growth rate has already slowed to 1.5 percent even as the global economy is strengthening. Britain’s currency has depreciated by about 10 percent and inflation is rising with increased prices for energy and food. Chris Giles, writing for the Financial Times, reviews three methods for assessing how the British economy might have performed had voters not approved Brexit: “The results vary according to the comparisons made, but all show the UK economy has been damaged even before it formally leaves the EU on March 29 2019.” Brexit supporters express hope that the economic hits are only short term and that some sectors can anticipate increased quality by shedding EU regulations. Uncertainty about the post-Brexit EU-UK relationship has prompted many companies to put a pause on investment and others to consider relocation. – YaleGlobal