London Mayor Sadiq Khan has revealed the extent of the Brexit impact on the UK, claiming that the country’s departure from the European Union has decimated the size of its economy by 6%. This reduction equates to an annual cost of £140 billion ($178 billion), a rate that is expected to climb, with the Brexit impact predicted to reach a 10% economy shrink by 2035. Khan, a Labor Party member, supported his assertions with recent data provided by Cambridge Econometrics. They proposed an accelerated economy growth rate if the UK had chosen to stay within the EU. “It’s now apparent Brexit is failing, having negative repercussions on our economy and raising living costs,” said Khan. Direct comparisons and projections remain challenging due to the global Covid-19 pandemic that followed the UK’s official EU departure in 2020. However, despite variations in estimates, the consensus among analysts appears to be that Brexit will continue to significantly impact the UK’s economic trajectory.
The EURUSD currency pair remains in a tight range above the 1.0900 support level on Monday as it struggles for direction. Investors seek fresh cues at the start of a busy data week, which may indicate how much the Federal Reserve will cut interest rates in September.
