The Cost of Brexit for the UK: $170 Billion and Counting

Research by Bloomberg Economics estimates that the economic cost of Brexit has already hit 130 billion pounds ($170 billion), with a further 70 billion pounds set to be added by the end of this year. That’s based on the damage caused by the U.K. untethering from its Group of Seven peers over the past three years.

While growth globally has also cooled in recent years, the analysis by Bloomberg Economics shows the U.K. has still lagged. There is a strong historic correlation between the U.K. and G-7 countries. But they have been diverging since the vote to leave the EU, with the British economy now 3% smaller than it could have been had the relationship been maintained.

Dan Hanson, U.K. economist for Bloomberg Economics, puts the total cost of Brexit by the end of 2020 at 200 billion pounds as uncertainty continues to take a toll on companies and consumers.

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