business
Brexit cost 6% of UK economy, Bank of England company data suggests
Key takeaways
- Examining data that the Bank uses to decide on interest rates, the study analysed lost growth by trying to reconstruct how the UK would have grown if it had not voted to leave the EU.
- But some critics say the study does not fully account for the outperformance of the US investment and tech industries or the European energy shock four years ago.
- Co-author of the study, British professor Nick Bloom from Stanford University, said the UK was growing fast in the years before Brexit and could have at least partially kept up with the US without the disruption.
Faisal Islam Economics editor Getty Images The UK economy has taken a 6% hit from the effects of Brexit, according to economists' analysis of internal Bank of England data about the decisions, views and financial results of thousands of British companies since the referendum a decade ago.
Examining data that the Bank uses to decide on interest rates, the study analysed lost growth by trying to reconstruct how the UK would have grown if it had not voted to leave the EU.
It found that about half the economic hit came from the sheer surprise and uncertainty of the post-referendum period while the rest was from rising trade barriers after the UK left the customs union and single market in 2021.
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