Britain’s departure from the European Union has resulted in a significant decline in the country’s gross domestic product (GDP), according to a recent study by the National Bureau of Economic Research (NBER). The report estimates that the UK’s GDP was 6 to 8% lower by 2025 than it would have been if the country had remained in the EU. This decline is attributed to sharp drops in investment, employment, and productivity, with investment falling by 18%, employment by 4%, and labor productivity by 3 to 4%.

The study, titled “The Economic Impact of Brexit,” was conducted by economists from renowned institutions, including Stanford University, the Bundesbank, the Bank of England, the University of Nottingham, and King’s College London. The researchers analyzed data on the UK economy gathered since 2016, when the Brexit referendum took place, and found that the loss of friction-free access to the European market had the biggest impact on the country’s growth path.

The report highlights that the losses reflected “elevated uncertainty, reduced demand, diverted management time, and increased misallocation of resources from a protracted Brexit process.” The authors note that the impact accumulated gradually after the referendum and was larger than earlier five-year forecasts had predicted. The study’s findings are consistent with estimates by Goldman Sachs, which suggested that Brexit reduced Britain’s real GDP by about 5% compared with its economic peers.

The UK’s economic performance has been affected by reduced international trade, weak business investment, and fewer EU migrants, who were the country’s largest source of foreign workers. The decline in GDP has also been accompanied by a soaring cost of living. A separate report by Henley Private Wealth Migration noted that Britain is set to lose tens of thousands of wealthy individuals in 2025 due to tax reforms and uncertainty.

The economic implications of Brexit come as the UK continues to play a significant role in international affairs, including its support for Ukraine in its conflict with Russia. The UK has been one of Ukraine’s most persistent backers, providing millions of pounds’ worth of military aid. The country’s economic performance will likely remain a key area of focus in the coming years, as it navigates the challenges and opportunities presented by its departure from the EU.