The Mayor of London says Brexit has cost the UK more than $178 billion so far

By David Milliken

LONDON (Reuters) – Britain's farewell to the European Union has shrunk the size of its economy by six percent so far at an annual cost of 140 billion pounds ($178 billion), the British government said. The deficit is expected to reach 10% by 2035.

Khan, a member of the opposition Labor Party, which voted against Brexit in the 2016 referendum, relied on a report commissioned by economic consultancy Cambridge Economics, which estimated how quickly the economy would have grown if the UK had chosen to leave. From the European Union. Britain's exit from the European Union. Remaining in the European Union.

“It is now clear that Brexit is not working,” Khan said in remarks issued ahead of a speech he will deliver later. “The hardline version of Brexit that we have ended up with is dragging down our economy and driving up the cost of living.” Per day.

The Labor Party has a significant lead over the Conservative Party led by Prime Minister Rishi Sunak before the elections, which could be held in the second half of this year. However, Labor leader Keir Starmer was cautious about providing details on how to strengthen ties with the EU.

Cambridge Econometrics' estimates of the costs of Brexit are higher than other recent estimates.

The National Institute of Economic and Social Research (NIESR) estimated in November that Brexit had reduced the size of the economy by 2% to 3%, with the impact expected to rise to 5% to 6% in 2035.

Jonathan Haskell, head of policy at the Bank of England, estimated last year in a special appearance that Brexit had hurt business investment enough to cut GDP by 1.3% by the end of 2022, the equivalent of £1,000 per household per year. .

See also  The UK enters recession at the end of 2023 with GDP falling by 0.3%

According to Cambridge Economics, Brexit is expected to reduce annual British economic growth by 0.4 percentage points between now and 2035, cut employment levels by 3 million people until 2035, and cut investment by a third.

($1 = 0.7843 pounds)

(Edited in Spanish by Carlos Serrano)

Leave a Reply

Your email address will not be published. Required fields are marked *