Brexit has cost the UK economy considerably, increasing prices and decreasing the size of the nation’s economy, according to a Monday Bloomberg story which referenced Goldman Sachs researchers.

In comparison to its peers’ economic performance, the country’s exit from the EU has caused Britain’s real GDP to fall by roughly 5%, according to Sven Jari Stehn, chief European economist at Goldman Sachs.

Seven years after the referendum campaign, the experts pointed out that Britain’s economy was failing and its cost of living had become sky-high because of sluggish business investment, decreased foreign commerce, and a reduction in immigration from the EU, the UK’s main trading partner.

The economists at Goldman Sachs stated in a note, “The evidence points to a significant long-run output cost of Brexit. The UK has significantly underperformed other advanced economies since the 2016 EU referendum.” 

Previous projections from other analysts have also indicated that Brexit will have a detrimental long-term effect. In November, the UK’s National Institute of Economic and Social Research (NIESR) figured that Brexit has shrunk the size of its economy by 2-3%, and by 2035, the damage is predicted to increase to 5-6%.

The UK Office for Budget Responsibility estimated that a 4% decrease in economic output was a result of the EU leaving last year.

However, the Goldman economists noted that not all of the UK’s economic problems are related to its decision to leave the EU. Brexit challenges are in addition to the harm done by the Covid-19 outbreak, the energy crisis brought on by the conflict in Ukraine, and the high interest rates needed to control inflation, which is at all-time highs in the United Kingdom.