Britain’s GDP Could Shrink by Three Percent Long After Brexit

Retaining a customs union with the EU after Brexit will cause the British economy to lose around three percent of its value in the long term

Brexit

Retaining a customs union with the EU after Brexit will cause the British economy to lose around three percent of its value in the long term. This is the most favorable option being considered by the opposition Labour Party.

Instead of staying with the EU, leaving in such a way would cause a loss equivalent to about 800 pounds per person per year, 10 years after Brexit. This data is from a report put out by National Institute for Economic and Social Welfare (NIESR).

A customs union arrangement with the EU will make trade a costlier proposition for the UK and limit the country’s ability to strike free trade deals with other nations. Britain’s GDP could come down by as much as 3.1 percent 10 years after leaving the EU in such a scenario, while tax revenues could come down by 2.9 percent.

While Brexit supporters feel that the customs union arrangement with the EU will give Britain greater freedom in signing trade deals with other nations, it could also lead to a reduction in access to EU markets.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers