The U.K. economy may be paying for Brexit for a long time to come.
The strength of the expansion since the vote to leave the European Union hasn’t allayed concern about how the decision will filter through the economy over the coming years. It won’t mean Armageddon, but the broad consensus among economists — whose predictions about the initial fallout were largely too pessimistic — is for a prolonged effect that will ultimately diminish output, jobs and wealth to some degree.
For analysts gauging likely outcomes, issues in the mix range from the fallout on trade, investment and London’s financial district to knock-on effects on hiring, inflation and demand. There may also be offsetting factors to take into account, including if any of the lost benefits of EU membership can be replicated or replaced via other deals.
Source: Bloomberg (22 February 2017)