Study: Brexit has shrunk the economy by 6%

As the 10th anniversary of Britain's departure from the European Union approaches, new research points out that Brexit has left the British economy about 6% smaller than it would have been had it remained in the EU. (File photo from Bloomberg)

As the 10th anniversary of Britain's departure from the European Union approaches, new research points out that Brexit has left the British economy about 6% smaller than it would have been had it remained in the EU.

According to the "BBC" report, this study was conducted by Nick Bloom, a professor at Stanford University in the United States, and economists at the Bank of England (BoE). The research team used data from thousands of companies that the Bank of England usually uses as a reference for interest rate decisions to reconstruct the possible economic growth path of the UK without Brexit. The results show that Brexit has caused the UK economy to lose 6% of its size over the past 10 years.

Research points out that about half of the economic losses come from the uncertainty faced by markets and companies after the 2016 referendum, and the rest comes from the impact of increased trade barriers after the UK exits the EU single market and customs union in 2021. Bank of England Governor Andrew Bailey also admitted in a recent interview that Brexit has reduced the size of the UK's trade market, which will have a negative impact on economic growth and productivity.

Facing economic and trade difficulties, British Prime Minister Keir Starmer has announced that he will meet with EU leaders at the summit in July this year to try to reach new agreements in areas such as food, agricultural exports, electricity and carbon emissions trading to ease trade barriers caused by Brexit.

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