Brexit Britain has 'significantly underperformed' other advanced economies, Goldman Sachs says

Post-Brexit Britain has experienced lower economic performance compared to other advanced countries, according to Goldman Sachs. The UK economy has grown 5% less in the past eight years compared to comparable countries. The economic impact of Brexit is estimated to be between 4% and 8% of real GDP. The reduced trade, weaker business investment, and lower immigration from the EU are the main contributing factors. The UK’s goods trade has underperformed by approximately 15%, while business investment has fallen below pre-referendum levels. Immigration from the EU has decreased, with non-EU migrants, primarily students, filling the gap. “Taken together, the evidence points to a significant long-run output cost of Brexit,” the report stated. The change in immigration flows has led to labor supply issues, contributing to inflationary pressures. U.K. real GDP per capita has only slightly increased since mid-2016, with higher inflation compared to the U.S. and the euro zone. Although new non-EU trade agreements could potentially mitigate the costs, estimates suggest the benefits will be minor.