Brexit Bites: Post-Brexit Britain Underperforms, Goldman Sachs Analysis Reveals

Brexit's Economic Fallout

Well well well would you look at that? According to Goldman Sachs post Brexit Britain has fallen behind other advanced economies by a whopping 5% in terms of economic growth. That's like falling off a cliff in World of Warcraft when you thought you had a flying mount. Ouch!

Quantifying the Damage

Goldman Sachs estimates that the true cost of Brexit to the British economy could be anywhere from 4% to 8% of real GDP. Talk about a critical hit! But hey at least they acknowledge the difficulty of separating the impact of Brexit from other calamities like the Covid 19 pandemic and the 2022 energy crisis. It's like trying to loot a rare item while being attacked by a bunch of Murlocs.

Reasons for Underperformance

According to Goldman Sachs the economic shortfall can be attributed to three key factors: reduced trade weaker business investment and labor shortages due to lower immigration from the EU. It's like the UK entered a raid without enough tanks and healers. No wonder they're struggling!

Brexit Freedom or Azerothian Mayhem?

The UK government claims that they're making the most of Brexit freedoms to grow the economy. But take it from me Asmongold sometimes freedom comes with a hefty repair bill. And repealing EU financial services law? That's like banning the use of mounts in Azeroth. Good luck getting anywhere!

Trade and Investment Woes

Since the Leave vote UK goods trade has underperformed other advanced economies by 15%. That's like losing a duel to a level 1 gnome. And don't get me started on business investment. It has fallen notably short of pre referendum levels. The UK needs a better loot drop if they want to level up their economy!

The Immigration Twist

Ah immigration. It was a key pledge of the Vote Leave campaign and now it's causing some headaches. Immigration from the EU has dropped only to be replaced by less economically active non EU migrants. It's like recruiting a bunch of low level NPCs instead of top tier raiders. Not ideal!

The Labor Market Battle

Goldman Sachs highlights the impact of immigration changes on the labor market and inflation. The reduced labor supply has led to a post pandemic surge in inflation which is like getting hit with a sudden mob respawn. It's time to bring out the AOE attacks and sort out the cyclical labor market issues!

GDP Comparisons: UK vs Euro Zone and US

The UK's real GDP per capita has barely risen above pre Covid levels standing at a measly 4% increase since mid 2016. Meanwhile the euro zone has seen a solid 8% growth and the US is sitting at a whopping 15%. Looks like the UK needs an XP boost ASAP!

Inflation Woes

Higher inflation has been hitting the UK hard. Consumer prices have risen 31% since mid 2016 while the US and euro zone are at 27% and 24% respectively. It's like being chased by a pack of aggressive elite mobs. Time to pop those defensive cooldowns!

Trade Agreements: Small Benefits

The British government hopes that new non EU trade agreements will mitigate the costs of Brexit. But let's be real the estimated boost to U.K. GDP from the trade agreement with Australia is a measly 0.08% per year. It's like finding a gray item instead of an epic drop. Not exactly game changing!