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UK economy has missed out on £550m a week since EU referendum

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A new report has suggested that Brexit has cost the UK economy £550m in lost growth since the referendum in June 2016 – £66bn worse off in just three years.

That’s according to Standard & Poor’s Brexit report, which noted the fall in the value of sterling as one of the primary factors affecting potential economic growth.

Senior economist at S&P, Boris Glass noted that: “Uncertainty over the shape and form Brexit will take has increasingly paralysed any forward-looking decision making.

“This is reflected in particular in a contraction of business investment in 2018.”

S&P’s analysis was actually more favourable than Goldman Sachs and The Bank of England, who estimate lost growth to be £600m and £800m per week respectively.

However, major businesses are still more than optimistic about the trading conditions in the UK and the ease of doing business. CEO of Made.com noted the UK has the best location in Europe to do business, ahead of Berlin and Paris… despite Brexit.

Read more: Germany increasingly concerned by lack of SME Brexit readiness

In an interview with The Telegraph, Philippe Chainieux commented that: “The UK has been, and I think, still is, a more international hub, attracting money first of all, and talent from across the world.

“Berlin, Stockholm and Paris are far behind from that perspective.

“The merit of London is that it’s easier to build an international business here because the capacity to attract people from everywhere, to attract talent, culture, world understanding in one single hub is absolutely huge.

“In fact, it’s so much easier to do it here than anywhere else in Europe.”

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