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UK Prime Minister Boris Johnson wants to “unleash Britain’s potential”.
First the economy has to catch back up with the rest of the world.
Research by Bloomberg Economics estimates that the economic cost of Brexit has already hit £130 billion (about R2,4 trillion at current exchange rates), with a further £70 billion set to be added by the end of this year.
That’s based on the damage caused by the UK untethering from its Group of Seven peers over the past three years.
The UK is finally set to leave the European Union at the end of this month after Johnson’s decisive election victory.
But the uncertainty since the 2016 referendum has taken a toll.
Business investment in particular has been held back, and annualised economic growth has halved to 1 percent from 2 percent.
Dan Hanson, UK economist for Bloomberg Economics, puts the total cost of Brexit by the end of 2020 at a towering £20bn, as uncertainty continues to inhibit companies and consumers.
While Johnson’s deal with the EU late last year removed the imminent threat of a no-deal split, he still has to negotiate new trading arrangements.
That creates another potential cliff edge at the end of the year. — AFP.
Peter Tanyanyiwa
Online Reporter