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Britain loses $178 billion annually due to exit from EU

Britain loses $178 billion annually due to exit from EU Britain loses $178 billion annually after exiting the EU (photo: Getty Images)

London Mayor Sadiq Khan stated that the United Kingdom loses $178 billion annually due to the exit from the EU, according to Reuters.

According to the mayor, the UK's withdrawal from the European Union has led to a 6% reduction in its economy. This means that the country loses approximately £140 billion (or $178 billion) annually. It is anticipated that by 2035, this figure will reach 10%.

"The hard-line version of Brexit we've ended up with is dragging our economy down and pushing up the cost of living," Khan stated in comments released ahead of his speech.

According to estimates from the National Institute of Economic and Social Research (NIESR) in the UK, Brexit has resulted in a 2-3% contraction of the country's economy. It is expected that by 2035, this figure will increase to 5-6%.

A British economist believes that the UK's exit from the European Union has led to a contraction in business investments. This, in turn, may result in a 1.3% reduction in the country's GDP by the end of 2022. This translates to approximately £1,000 per British household annually.

According to Cambridge Econometrics, Brexit is expected to decrease annual economic growth in the United Kingdom by 0.4 percentage points by 2035, reduce employment levels by 3 million by 2035, and cut investments by a third.

Exit of the United Kingdom from the EU

The decision to exit the European Union was made in a referendum on June 23, 2016. In the referendum, 52% of voters supported leaving the association, while 48% were against.

Following the referendum, negotiations between the UK and the EU commenced regarding the terms of the UK's departure from the union. The negotiations were complex and lasted for several years. On January 31, 2020, the UK officially exited the EU.

After leaving the EU, the UK entered into a trade and cooperation agreement with the union, which came into effect on January 1, 2021. However, the agreement is not without its challenges, and both sides periodically express dissatisfaction with its terms.