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‘Worse than feared’: How Brexit costs UK £33bn in trade and investment –Report

British Prime Minsiter Rishi Sunak

*The Centre for European Reform research discloses there ‘has been a sizeable hit on trade and investment’, as the economy of the United Kingdom is 5.5 percent smaller than it would have been if the country had remained inside the European Union

Gbenga Kayode | ConsumerConnect

Stating the economic damage to the country is even worse than previously feared, a fresh study found that Brexit has cost the United Kingdom (UK) staggering £33billion in lost trade and investment.

ConsumerConnect reports the Centre for European Reform (CER) research indicates the UK’s economy is 5.5 percent smaller than it would have been if the country had remained inside the European Union (EU).

The CER is a London-based “think tank that focuses on matters of European integration. It is a prominent source of ideas and commentary in debates about a wide range of EU-related issues, both in the United Kingdom and in the European Union.”

The UK’s goods trade is 7 percent lower and investment is 11percent lower than it would have been had the ‘Remain campaign’ won the 2016 Brexit referendum, noted the think tank’s analysis.

John Springford, Deputy Director of CER, said: “Brexit has clearly had a significant impact on the economy.

“There has been a sizeable hit on trade and investment.”

Mr. Springford, author of the study, also stated: “There is a gap between the things politicians want to say about Brexit and what the data tells us.

“I think it’s become impossible to argue that Brexit has not hurt the UK economy.”

The CER modelled the performance of a “doppelganger” UK – if the country had remained inside the EU, using data from other advanced economies similar to the UK prior to Brexit, including the US, Germany, Norway and Australia, Independent Irish report noted.

A previous CER report found that by the end of last year, the UK economy was 5.2 percent smaller than if the country had not left the EU, a loss of around £31billion, report said.

How UK’s economy drops by 5.5 percent post-Brexit

The Think Tank has now found that by June 2022, the UK’s GDP was 5.5pc smaller than if Brexit had not happened, a loss of £33billion.

The Centre further found that the economic hit, first apparent in the years after the 2016 referendum, had become significantly bigger once the UK quit the single market and customs union at the start of 2021.

Springford noted: “If you significantly raise trade barriers with your closest trade partner then it’s going to have big impact on your trade volume.

“There has been a very, very clear effect on investment in the UK ever since the 2016 vote – it has completely flatlined.”

The Deputy Director of CER added: “That is not true of other similar economies.

“It is feeding into slow growth because it lowers productivity.”

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