Brexit 3 Years... Productivity Loss Equals 1.3% of GDP
[Asia Economy Reporter Haeyoung Kwon] An analysis has revealed that the economic loss suffered by the UK due to decreased corporate investment during the three years of Brexit (the UK's withdrawal from the European Union) amounts to ?29 billion (approximately 45 trillion KRW).
Jonathan Haskel, a Monetary Policy Committee member of the Bank of England (BOE), stated in an interview with the website Overshoot on the 13th (local time), "It is true that UK productivity significantly slowed down until the 2016 Brexit vote, but private investment was still substantial."
According to Professor Haskel, an economics professor at Imperial College London, compared to other countries where corporate investment increased, the productivity loss after Brexit amounts to 1.3% of the Gross Domestic Product (GDP). This means a productivity loss of ?1,000 (approximately 1.55 million KRW) per household, totaling ?29 billion.
Professor Haskel explained, "Investment surged around 2012, peaked in 2016, and then fell to the lowest among the Group of Seven (G7). If the investment growth trend had continued a bit longer at that time, the economic slowdown would not have appeared this severe."
As the UK marks three years since Brexit, recent studies on the economic losses caused by Brexit have been pouring out from the BOE and the Office for Budget Responsibility (OBR). Among these, major politicians from both ruling and opposition parties in the UK met privately over two days on the 9th and 10th to focus on discussing Brexit issues and improvement measures. Members supporting and opposing Brexit, representatives from companies and financial firms, diplomats, and defense experts attended the meeting.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
