Coronavirus and tough Brexit will cost Britain $174 billion annually

Over the next decade, the United Kingdom will be paying the price for the government’s incompetent response to the spread of the coronavirus and the failure to strike a trade deal with the European Union.

According to British Prime Minister Boris Johnson, October 15 will be the deadline for a Brexit agreement with the EU. If that doesn’t happen, according to analysts at the law firm Baker & McKenzie, Britain will pay $174 billion annually over the next decade.

This financial damage is due to the fact that a hard Brexit will reduce GDP in the long term by 3.1% compared to the scenario in which the country remains part of the EU. In addition, the export of goods will decrease by 6.3%, experts predict.

The situation is aggravated by how hard the coronavirus has hit Britain. The pandemic will cost the kingdom 2.2% of GDP compared to pre-coronavirus projections.

“While businesses are taking steps to offset the additional costs associated with Brexit by realigning supply chains, the decline in export earnings for UK manufacturers will be significant”, – Baker & McKenzie said.

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