According to currency strategists at Goldman Sachs, the British economy is worse off today than before Brexit. The loss varies from 4% to 8% of real gross domestic product.
Britain has “significantly underperformed” other advanced economies since the 2016 Brexit referendum, Goldman Sachs noted.
In a note entitled "The Structural and Cyclical Costs of Brexit," the bank estimated that the UK economy grew 5% less than other developed countries in the past eight years after voting to leave the European Union. Goldman Sachs calculated that the real damage to the country’s economy could be between 4% and 8% of GDP. At the same time, the bank acknowledged difficulties in defining the true impact of Brexit due to a number of economic factors, including the Covid-19 pandemic and the energy crisis in 2022.
According to the leading investment firm on Wall Street, Britain’s economic downturn could be attributed to shrinking trade turnover, lower business investment, and labor shortages amid weaker immigration from the EU. Meanwhile, the labor force from the bloc was replaced by non-EU migrants. "Taken together, the evidence points to a significant long-run output cost of Brexit," Goldman Sachs said.
Earlier, it was reported that the United Kingdom faced shortages of black tea, the national drink of Britons, due to delays in deliveries caused by Houthi attacks on ships in the Red Sea. Major retailer Sainsbury's was the first to report supply problems with black tea. According to the bank, this could lead to further price increases and impact the availability of some categories of goods.
