Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Brexit dealt a 5% blow to the UK economy, says Goldman Sachs

by February 13, 2024
February 13, 2024
Brexit dealt a 5% blow to the UK economy, says Goldman Sachs

The UK economy is now 5 per cent smaller than it would have been if the nation had opted to remain within the European Union, as outlined by an evaluation conducted by Goldman Sachs.

A significant downturn in UK goods trade, decreased business investment, and a notable rise in non-EU migrants coming to Britain for studies rather than employment have hampered economic expansion.

Analysts at the American investment bank highlighted that “the UK has notably lagged behind other developed economies since the 2016 EU referendum, experiencing slower growth and higher inflation”. It was estimated that consumer prices had surged by 31 per cent in Britain since 2016. In comparison, the United States and the eurozone saw increases of 27 per cent and 24 per cent, respectively.

Increased trade hurdles have driven up the costs associated with goods exchange, thereby exerting upward pressure on prices, according to Goldman. The bank’s experts stated that their “analysis indicates that reduced EU immigration has likely contributed to labour market tightening, thereby fuelling higher inflation rates in the UK since 2016.

“EU immigrants typically exhibited high levels of participation in the labour market, as many arrived in the UK with the intention to work. Conversely, a significant portion of recent arrivals are students, indicating that immigration might not be as influential in bolstering labour supply as the headline figures suggest.”

Since the EU referendum, the influx of European citizens to Britain has sharply declined. However, this decrease has been offset by a surge in non-EU migration to the UK, leading to a total net migration figure of 745,000 in 2022, a record high. Last month, the Office for National Statistics predicted that net migration would contribute to pushing the UK population to 74 million by 2036.

While the shift in migration patterns has contributed to short-term inflationary pressures, Goldman noted that a larger proportion of migrants now arriving in Britain are highly skilled, which could “yield long-term benefits in terms of enhancing productivity”.

Investment levels have remained “subdued” since 2016, Goldman remarked, owing to “prolonged uncertainty surrounding the ultimate Brexit arrangement”. Nonetheless, the bank’s analysts observed that “with much of this uncertainty now resolved, some of the investment weakness might reverse, aligning with a recent uptick in investment activity”.

Economists have pointed out that Britain’s economic growth rate has markedly slowed since the 2008 global financial crisis due to limited productivity advancements. These have been attributed to dwindling private and public sector investment.

Read more:
Brexit dealt a 5% blow to the UK economy, says Goldman Sachs

0
FacebookTwitterGoogle +Pinterest
previous post
Adnams Seeks Advisers to Raise Funds and Secure Future
next post
Aston Martin in discussions with bankers over debt burden ahead of repayment deadlines

You may also like

Britain’s fastest-growing firms revealed for 2025: Dfyne, Nala’s...

June 29, 2025

8 Businesses Worth Considering As Lucrative Startups

October 20, 2022

Economists and Activists Call on Rachel Reeves to...

October 25, 2024

UK and US refuse to sign global AI...

February 11, 2025

Bank of England faces pressure to cut rates...

September 16, 2024

Code First Girls Teaches Tech Skills to Over...

June 20, 2024

Over one million sign petition to strip ex...

January 8, 2024

The Benefits and Challenges of Implementing a Knowledge...

December 2, 2024

Apple announces new security and privacy measures amid...

December 8, 2022

Saudi Arabia acquires 40 per cent stake in...

October 8, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • SkyWater pitches itself as all-American firm as Trump mulls more equity deals following Intel deal

      August 27, 2025
    • 600,000 Chinese Students Would Be a Windfall for the United States

      August 26, 2025
    • EPA urged by state AGs to axe funds for ‘radical’ climate project accused of training judges

      August 26, 2025
    • ‘Doctor Strangelove with a mustache’: Bolton blasted for ‘profiteering’ off US secrets by White House advisor

      August 26, 2025
    • Bolton may be in hot water as FBI investigation expands beyond controversial book

      August 26, 2025
    • New Cato Paper: Immigrants Cut Victimization Rates, Boost Crime Reporting

      August 26, 2025

    Categories

    • Business (8,886)
    • Investing (2,242)
    • Politics (16,494)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved