New research from IPPR has found
that
-
Reduced goods exports to
the EU due to Brexit have cost the UK economy an
estimated £18.1bn per year
-
Reduced goods exports to
the EU due to Brexit costs us 0.63 per cent
of GDP per year
-
As a result of
Brexit, ours goods exports to the EU are an
estimated 14.5 per cent lower than they would have
been otherwise
Laura Chappell, associate
director at IPPR, said:
Brexit has put a persistent drag
on Britain's economy. Our analysis shows that
reduced goods exports to the EU are costing the UK
around £18.1 billion a year equivalent to 0.63 per cent
of GDP with EU exports 14.5 per cent lower than they
otherwise would have been.
"At a time of weak growth,
squeezed living standards and strained public finances, this is a
cost the country can ill afford. The government should be honest
about the economic damage being done and pursue an
even closer, more pragmatic trading relationship with Europe
to support jobs, investment and growth.
ENDS
NOTES TO
EDITORS
-
METHODOLOGY: This
work replicates analysis undertaken previously by academics
Janez Kren and Martina Lawless. Our analysis extends their
approach using data to 2024. It also makes some
adjustments to ensure that the results are
robust. This includes dropping re-exports and 2020
(the main Covid year) from the data sample. To
calculate the effect on GDP, we take the value of
lost trade in monetary terms, and attempt to strip
out the imported component of UK exports.
