Brexit has cost the UK as early as 153 billion euros – and it gets even thicker

153 billion euros – so much more the UK could have the economy for 2015, deserve, had it not been for the Brexit. This was the result of an analysis of the fina

Brexit has cost the UK as early as 153 billion euros – and it gets even thicker

153 billion euros – so much more the UK could have the economy for 2015, deserve, had it not been for the Brexit. This was the result of an analysis of the financial news Agency Bloomberg. Which compared how the economy has developed in the UK in parallel to the other G7 countries USA, Canada, Germany, France, Japan and Italy.

The reason for this: Historically, the development in the large industrial States approximately parallel. This also applies for 2015: In all countries, the gross domestic product, rose for the better comparison, in US dollars, converted in the four years since then, between 13 and 19 percent.

UK loses a further 63 billion euros this year,

Only two States to make an exception because: In France, it fell by only five percent. But at the very bottom of the UK is. Here is the GDP by the end of 2019 even one percentage point lower than four years previously.

This gap is the 153 billion Euro, Bloomberg has calculated. Is this year – if the actual Brexit is pending – even bigger: a further 63 billion euros to the British economy up to 2020, afterwards.

Why the British economy is lagging behind

Behind two reasons: first, the real economy has slowed down growth in the country in the home currency, the pound Sterling significantly. On average it was for 2015 at 1.7 percent in the same period previously, at 2.2 percent.

the weakness of the British currency comes In the top of the pound Sterling depreciated against the US Dollar since the Brexit Referendum in June 2016, some 25 percent of its value, currently it is at a Minus of 18 percent. The Euro, for example, has held in the same period, its value against the US Dollar.

The weak economy is also on the stock exchange felt it went with the London benchmark index, the FTSE 100 since the Referendum of around 25 percent, which is significantly less than the Dax (+41 percent), Nikkei 225 (+61 percent) and the S&P 500 (+63 percent) won.

lack of trade agreements creates uncertainty

the gap between Britain and other industrial countries could still grow for many years more. Although the country is the EU on the 31. January finally leave, but after that, London and Brussels to negotiate new trade agreements. This could drag on for years, and the economy with uncertainty plating, the limits on the investment and thus growth.

As the conservative government of Prime Minister Boris Johnson wants to counter this risk, it will show in March. Then his Finance Minister will present the first budget for the period after the Brexit. Are planned for such tax breaks and easier lending for investments to boost the economy.

Dan Hanson, Bloomberg Economics expert for the British economy, holds from it a little: "This should help in the short term, but the long-term Trend will not stop," he says, "the cost of the Brexits are likely to continue to rise."

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Date Of Update: 23 January 2020, 01:01

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