London: Britain’s departure from the European Union could cause output losses of as much as 9.5 per cent per person, according to new research. Calculations using models that incorporate productivity measures show a negative impact on gross domestic product per capita of almost four times that of previous estimates, according to professor John Van Reenen, who supported the campaign for the UK to remain in the EU. That’s because increased costs of doing business with the rest of Europe — which accounts for about half of all UK trade — will mean lower levels of commerce and foreign investment, and thus lower average incomes in Britain, he said.
The Bank of England predicts growth will slow this year as the weaker pound fuels inflation and uncertainty over Brexit negotiations hinders investment.
