Counting Brexit’s economic costs

Brexit marks its fifth anniversary this month, with its economic impact often analyzed through ‘doppelgänger’ methods. While these methods are helpful, they can overstate Brexit’s negative effects, especially when comparing to strong US growth. Restricting comparisons to a ‘European doppelgänger’ shows a UK GDP underperformance of about 4.3%, or £1,750 per person annually. The UK’s challenges stem from weak investment, poor productivity growth, and increased savings, all exacerbated by Brexit.