Goldman Sachs: The current UK losses due to Brexit reached a colossal mark

Due to the imminent UK withdrawal from the EU, the current loss of the country's economy has already exceeded the mark of 87 billion pounds. Such data became known thanks to the latest analytical report from the American investment bank Goldman Sachs.

As stated in the text of the report, the protracted British withdrawal from the EU has already seriously devastated the state’s reserves and treasury. Having lost almost 70 billion in government deposits and about 17 billion in budget transactions, the total amount of losses for the first time exceeded 86 billion pounds (or almost 114 billion US dollars).

Based on the text of the report, it is clear that annual losses amounted to 600 million pounds. This led to the fact that the GDP of the island country fell by 2.5%, there was a sinking of the value of the pound sterling in the interbank market, which was also aggravated by the outflow of investments into the country.

“The risks associated with uncertainty affected the growth of investments immediately after the vote, their influence is felt even now amid increased uncertainty around the Brexit procedure,”  said the authors  of document, which emphasized the decline in the consumer basket.

Goldman Sachs believes that there are only three most likely scenarios. At the first one, where the probability of non-exit from the EU has already grown to 40%, the UK economy will begin an intensive rise, strengthen the pound’s position by 10% and raise the GDP already by the next two years by 8%.

The second scenario - exit without a deal, which is 15%. If it is implemented by the government, then the country will lose an additional 5.5% of GDP and lose up to 17% of the pound sterling rate.

The third option is to conclude a deal with the EC in one form or another. The investment bank believes, with a probability of 45%, the implementation of this particular plan as the most acceptable for the state. In this case, the authors of the report predict a cumulative GDP growth of 1.75% and a rise in the national currency rate by 6%.

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