Brexit cost penalty worth £29 bln on UK productivity: Bank Of England
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Since the onset of the energy crisis, the central bank has been printing excessive amounts of money which has been causing much inflation and created the cost of living crisis.
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Buses drive past Liverpool Street station, in the financial district known as The City, in London, Friday, Oct. 7, 2022 (AP Photo/Alberto Pezzali)
The Guardian reported on Monday, citing financial sources, that the UK recorded losses worth £29 billion in its overseas investments, which is the equivalent of roughly £1,000 per household.
Ever since the UK Brexit the EU single market, private sector investment had "stopped in its tracks", according to a study conducted by Jonathan Haskel, an external member of the Bank of England's monetary policy committee who is responsible for setting national interest rates.
The study is likely to raise concerns that the Brexit vote and the strategy adopted by former prime minister Boris Johnson to leave the EU single market and customs union has resulted in damage beyond repair to the British economy.
Since the onset of the energy crisis, the central bank has been printing excessive amounts of money which has been causing much of the inflation and created the cost of living crisis.
On February 2, the Bank of England Monetary Policy Committee announced that it would increase the interest rate to 4% from 3.5%.
While the Bank of England may not possess the same capacity as the US Federal Reserve to print as much money without worrying about debt or interest payments, the UK can still manage to buy some time to recalibrate its policies and solve the structural problems.
Read more: Brexit growing less popular among Tories
In June 2016, 51.8% of UK citizens voted to end the country's membership in the EU, while 48.1% voted to remain in the union. Nonetheless, six and a half years later, the UK is still engaged in a lengthy and convoluted series of negotiations related to its exit from the EU.
UK Prime Minister Rishi Sunak's plan to repeal thousands of EU laws by the end of 2023 could spark a full-fledged trade war between London and Brussels, according to senior European Union officials.
Meanwhile, EU leaders are said to be secretly planning their own "unilateral rebalancing measures" in Brussels. These measures could include the option of imposing tariffs on UK goods entering the EU single market, according to media reports.
All of this could result in a trade war with the EU and serious economic damage to the UK.
