Britain’s chaotic exit from the European Union has cost the economy about 600 million pounds ($785 million) per week since the 2016 referendum, Goldman Sachs said on Monday, April 1 in a report that underscores how Brexit uncertainty has dented investment, Reuters reports.
The report found that Brexit had cost the world’s fifth largest economy nearly 2.5 percent of GDP at the end of last year, compared to its growth path prior to the mid-2016 vote on exiting the bloc.
It has also lagged other advanced economies.
“Politicians in the UK are still struggling to deliver on that vote,” Goldman Sachs economists wrote in a note to clients.
“The resulting uncertainty over the future political and economic relationship with the EU has had real costs for the UK economy, which have spilled over to other economies.”
The U.S. bank said Brexit uncertainty has been a major driver of economic output losses as they are concentrated in investment.
“Uncertainty shocks weighed on investment growth in the immediate aftermath of the Brexit vote, as well as more recently amid the renewed intensification of Brexit uncertainty,” the economists said.