Far from unleashing a new era of growth and investment, yet more evidence shows how damaging Brexit has been.
So much for the land of milk and honey promised by Brexiteers. A new report has found that UK business investment is 12 to 18 per cent lower than it would have been if Britain had stayed in the EU.
As the disastrous economic impacts of leaving the EU become ever clearer, new data released by the economists at Stanford University, the Bank of England, and the National Institute of Economic and Social Research has found that business investment loss by this year could be £275 billion or £400 billion.
The National reports: “Researchers used almost a decade of data since the referendum, combining simulations based on macro data with estimates derived from micro data collected through surveys.”
It goes on to add: “Before 2016, the UK’s business investment was growing at about 6 per cent a year, one of the strongest rates among G7 states. After the vote, that growth collapsed to almost zero. The Bank of England’s Decision Maker Panel found that companies that were heavily dependent on EU trade cut investment by 16 per cent, and the National Institute of Economic and Social Research estimates that UK business investment is 12 to 18 per cent lower than it would have been if Britain had stayed in the EU.
“Based on the UK’s pre-referendum investment level of about £230 billion ($301.5 billion) a year, the cumulative loss by this year could be £275 billion or £400 billion.”
Far from unleashing a new era of growth and investment, yet more evidence shows how damaging Brexit has been.
Basit Mahmood is editor of Left Foot Forward
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