Estimating that the economy is 4 per cent smaller than it would have been inside the EU, economists Ana Andrade and Dan Hanson said: “Did the UK commit an act of economic self-harm when it voted to leave the EU in 2016? The evidence so far still suggests it did.”
It comes as the International Monetary Fund (IMF) forecast that Britain’s economy would have the worst performance of all G7 economies this year – even sinking below Russia.
The international body downgraded its UK forecast once again, predicting a contraction of 0.6 per cent against the 0.3 per cent growth pencilled in last October.
Paul Johnson, the director of the Institute for Fiscal Studies (IFS), said Brexit “challenges” and labour shortages partly explained why the UK was expected to perform so badly in 2023.