Compared with the growth path before Britain's withdrawal from Europe in mid-2016, its gross domestic product (GDP) has lost about 2.5 per cent, lagging behind other developed economies in terms of investment hit by uncertainty.
"British politicians are still struggling to live up to the results of that referendum," Goldman Sachs analysts said in a customer report.
"This creates uncertainty about future political and economic relations between the UK and the EU, and has brought real costs to the UK economy, which have also spread to other economies."
Goldman Sachs pointed out that the uncertainty of Britain's withdrawal from Europe was the main reason for the loss of economic output, which was concentrated in the investment sector.
"After the vote, investment growth in the UK was subsequently hampered by the impact of uncertainty, and recently by the re-intensification of the uncertainty," economists said.
Their model found that the cost of Britain's exit from Europe since the referendum was about 600 million pounds ($785 million) a week.
Goldman Sachs expects a 15% chance of Britain leaving Europe without an agreement. If this happens, UK output will face huge losses and the pound will depreciate sharply, indicating that global confidence in the UK is "severely" frustrated.
Economists predict that European countries are most sensitive to this risk, with output losses likely to reach about 1% of real GDP.
Hot Model No.: