Post-Brexit customs union would make UK 3% poorer - NIESR

According to the National Institute of Economic and Social Research (NIESR), the UK academic forecasters, the British economy will be around 3% poorer over the long term if it leaves the European Union (EU) and retains a customs union with the bloc, as cited by Reuters.

Key Findings:

“The long-run loss after 10 years, compared to staying in the EU, would be equivalent to around 800 pounds ($1,040) per person per year.

NIESR’s report did not look at the option favoured by Prime Minister Theresa May, which would see a looser EU trading relationship than a customs union.

Overall gross domestic product 10 years after Brexit would be 3.1 percent lower in a customs union scenario than if Britain stayed in the EU, and tax revenues would fall by 2.9 percent.

Lower immigration would limit the per capita reduction in GDP to 2.3 percent, equivalent to 800 pounds per head.”