The cost already incurred by the United Kingdom after the Brexit referendum

The United Kingdom has incurred a series of costs since the June 2016 Brexit referendum: Less corporate investment and therefore less capital accumulation; Fall in immigration and therefore lower potential growth, which is also a result of the lower growth in capital; Deterioration in the terms of trade and therefore lower real incomes; Currency depreciation and therefore a fall in the international value of wealth; Weakening of asset prices (equities, real estate) and therefore a loss of wealth. Altogether, we see a loss of potential growth of 0.4% per year, a loss of wealth of 35 percentage points of GDP in national currency and 125 percentage points of GDP in foreign currency and a cumulative loss of real income of 4%.