Goldman Says UK Economy Suffering ‘Long-Term’ Cost of Brexit
- Real GDP has underperformed similar nations by 5% since 2016
- Pandemic, energy crisis also played a part, bank says in note
Pro-leave demonstrators in 2019.
Photographer: Luke MacGregor/BloombergThis article is for subscribers only.
The UK’s decision to leave the European Union shrank the British economy by reducing growth and spurring higher inflation, according to economists at Goldman Sachs Group Inc. who compared the country’s performance to similar nations since the referendum in 2016.
The UK’s real GDP has underperformed by about 5%, Sven Jari Stehn and colleagues said in a research note published late Friday. Reduced international trade, weak business investment and a drop in migrants coming from Britain’s largest trade partner have all contributed, they said.