The EU exit in 2016 has had noticeable consequences for Great Britain since the beginning of 2021. British households also suffered losses.
According to a central bank advisor, British households have lost an average of around 1,000 pounds (1,132 euros) as a result of Brexit. “We had a big boom (in investment) between 2012 and 2016,” said economist Jonathan Haskel in an interview published by The Overshoot newsletter. “But then investment has stagnated since 2016 and we have fallen behind the other G7 countries.”
The stagnation has lost around 29 billion pounds (33 billion euros) compared to the previous course, said Haskel, who sits as an external member on the monetary policy committee of the Bank of England and is a professor at London’s Imperial College. These productivity losses currently amount to around 1.3 percent of total economic output – or £29 billion a year.
Great Britain voted to leave the EU in 2016 and formally left the union at the end of January 2020. The consequences have only been noticeable since the beginning of 2021 – after the end of a transition phase. Despite a trade pact with the EU, trade barriers have increased. Hoped-for trade agreements with the USA, for example, did not materialize and were a long way off.
Source: Stern
