Britain has lost £29 billion due to Brexit, a central bank official has said

Britain has lost £29 billion due to Brexit, a central bank official has said

Britain lost £29 billion due to Brexit, central bank official said banks

The Bank of England in London in a picture taken on August 4, 2022.

London – Brexit stopped the wave of business investment, Britain lost 29 billion pounds because of it (CZK 779.4 billion), which is roughly 1.3 percent of gross domestic product (GDP). Each British household therefore lost about 10,000 pounds. In an interview published today by The Overshoot server, Jonathan Haskel from the Bank of England said so. Its officials are not warning about the effects of Brexit for the first time. At the same time, fears are growing that Britain is headed for a protracted economic downturn.

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Haskel emphasized that Britain is suffering from problems with production precisely because of the decline in business investment. According to him, the effects of Brexit on the economy in relation to GDP will increase from the current 1.3 to 2.8 percent at the end of the central bank's outlook. It provided an outlook to 2025 in the February monetary policy report.

The Central Bank recently stated that Brexit is among the factors that reduce the potential growth of the British economy. Investments by British businesses, plagued by uncertainty and weaker trade ties with the EU, have lagged behind previous investments and other countries since Brexit.

Before 2016, when the British voted to leave the EU in a referendum, Britain's productivity fell more significantly . But it was compensated by the amount of investment, emphasizes Haskel. “From 2012 to 2016, we had a big boom (of investment),” he said. “But they have simply stopped since 2016 and we have fallen to the bottom of the G7 countries,” he added. activity rebounded earlier than originally expected.