Brexit cost the UK economy $35 billion, says top Bank of England policymaker

A damning study conducted by a senior Bank of England policymaker has revealed that Brexit hurt the UK economy astronomically as it suffered business investment loss to the tune of $35 billion (£29 bn) since 2016, roughly amounting to $1,200 (£1,000) per household.

Jonathan Haskel, a member of the Bank of England's monetary policy committee, inferring from his report said private sector investment had basically flatlined post the 2016 referendum to leave the European Union.

"Current productivity penalty is about 1.3 per cent of GDP. That 1.3 per cent of GDP is about £29 billion, or roughly £1000 per household," Haskel was quoted as saying by The Overshoot.

"At the end of the forecast period, the penalty goes up to something like 2.8 per cent of GDP, which is very close to the 3.2 per cent number we found using the totally different reduced form methodology based on goods trade volumes."

In the last six years, the UK has suffered far more when compared to other major economies of the region.

The bad news is that the productivity gap has left long-lasting gashes which are not expected to heal unless there is a drastic turnaround in policy.

Haskel added that the economic boom between 2012-2016 plateaued afterwards and the UK quietly dropped to the bottom of G7 countries, investment-wise.

The Brexit saga

UK decided to leave the EU in 2016 after a lengthy campaign that divided the country into two halves, the remainers and the leavers.

Tories were the biggest proponent of leaving the EU citing it would help the UK grow economically having cut the flab of paying the 27-nation bloc.

However, Brexit, a worldwide pandemic and now a war in Europe has broken the back of the country. It hasn't helped the cause that Britain hasn't had a stable political government at 10, Downing Street.

Current Prime Minister Rishi Sunak's predecessor Liz Truss brought one of the most fatal economic packages on the table, which, if implemented, could have spelt the death knell of the UK.

'Brexit has failed' was among the top trends in Britain last weekend. According to a YouGov poll, about 70 per cent of Britons born between 1985 and 1994 said that the Brexit decision was the wrong one.

(With inputs from agencies)

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