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According to the report, Brexit cut UK GDP by 5.5%.

The Palace of Westminster is located in the City of London. | Fountain: AFP

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Economy United Kingdom was 5.5% lower in June of this year than it would have been had the country remained integrated into European Union (European Union), a slowdown that forced taxes to rise, according to a report released by the UK-based think tank Center for European Reform (CER).

The think tank, which has been regularly publishing analysis of the impact of Brexit since 2018, estimates that the level of investment in the UK is 11% lower than it could be, and trade in goods is 7% lower.

However, the level of exchange of services remained in a range similar to that which would have been recorded if United Kingdom would have continued to be part of the public bloc, according to a report prepared by CER deputy director John Springford.

“Influence Brexit inevitably led to tax increases because slowing growth requires higher taxes to fund public services,” Springford said in a statement.

According to his economic model, which models the evolution of the country’s finances in the event of a break with European Union did not happen, the annual tax income United Kingdom will be about 40,000 million pounds (45,300 million euros).

The report’s author argues that “there is little evidence to suggest that the long-term effects of the pandemic are greater (in United Kingdom) than in other countries”, therefore it is excluded that the coronavirus pandemic significantly changes the perception of the consequences of Brexit for the economy.

(As reported by EFE)


Source: RPP

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