UK has lost £6.6 billion each quarter since Brexit referendum, S&P says
The British economy has lost billions of pounds in economic activity each quarter since its electorate voted to leave the EU, according to a recent report by the global ratings agency.
The UK has lost £6.6 billion in economic activity each quarter since the Brexit referendum, according to a recent report released by S&P on Thursday.
The global ratings agency’s senior economist Boris Glass said that the British economy would have seen a 3% boost in economic growth by the end of 2018 if the country had opted to stay in the EU back in June 2016.
UK quarterly growth rates cut by Brexit
The report also outlines how UK quarterly growth rates would have averaged at around 0.7% if the Brexit referendum had swung the other way, compared to the 0.43% the country has seen, Glass said.
‘Immediately after the referendum, the pound fell by about 18 percent,’ he said. ‘This was the single most pertinent indicator of the impact of the vote and the drag it created, via inflation, has been spreading through the economy.’
Inflation could have been lower if UK voted to stay in the EU
S&P noted that as imports have become more expensive in the wake of the Brexit vote, inflation began to rise higher, reducing consumer spending which negatively impacted UK growth.
In fact, the global ratings agency estimated that inflation ended up being 1.8% higher by the third quarter 2017 as a direct result of how the British public voted.
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