Bank of England Data Reveals UK Economy Suffered 6% Setback Due to Brexit
The UK economy has sustained a 6% reduction in growth due to Brexit, according to economists analysing internal Bank of England data. This comprehensive study examined the decisions, perspectives, and financial outcomes of thousands of British companies since the 2016 referendum, utilising information typically informing interest rate decisions.
The research sought to quantify lost growth by modelling how the UK economy might have performed had it remained within the European Union. Approximately half of the identified economic downturn stemmed from the initial shock and prolonged uncertainty following the referendum, with the remaining half attributed to the erection of new trade barriers after the UK exited the customs union and single market in 2021.
Official Corroboration and Dissenting Views
Co-author Professor Nick Bloom of Stanford University indicated that the UK's pre-Brexit growth trajectory suggested it could have largely kept pace with the United States' economic performance in the absence of such disruption. Bloom emphasised the significant corroboration provided by the Bank of England's proprietary company data, noting that Brexit’s substantial economic impact unfolded gradually over the decade.
Bank of England Governor Andrew Bailey has recently acknowledged Brexit's role in a
