The UK’s ruling government’s very own study suggests Brexit will cost the UK between $80-$300 billion (2.5-9.3% of GDP) per year (!). A study commissioned by the “People’s Vote campaign” (which seeks a second Brexit referendum), was conducted by the independent National Institute of Economic and Social Research (NIESR), found that the most likely cost to the UK would be 3.9% of GDP or $125 billion. The House of Commons Treasury Committee requested that the Bank of England published an analysis of the effects of Brexit; the Bank of England Report published today suggested the impact could exceed $300 billion with -10% of GDP per year
Correlate “the different levels of integration” we learned bout in class with the “no deal” and “FTA” Brexit options in the figure below to explain the size and origins of the losses.
