The Brexit cost a million jobs to the British economy – Financial Journal

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The output of the United Kingdom of the European Union (EU) would be a “huge shock” to the British economy, according to a report today made public the employers of businessmen from UK CBI. An analysis worked by consultancy PwC, at the request of the business organization, indicates that the Brexit (rupture with the EU) would cause the loss of nearly one million jobs and would cost the British economy than 100,000 million pounds ( about US $ US $ 144.818 million) by 2020.

the intervention of the CBI can raise even further the campaign for the referendum that the UK held on June 23 to decide whether the country stays in the club European. The thesis of the employer is in line with the warnings given by British Prime Minister David Cameron, on the enormous negative consequences of the victory of supporters of Brexit. But advocates of this option accuse the government and its allies to launch a “campaign of fear” to scare voters, and consider the effect of the break with Brussels would be eased.

The report IWC will be presented today by its CEO, Carolyn Fairbairn, in a lecture at the London Business School where he will explain the effects on industry, employment and investment that would leave the decision to the EU. “The analysis shows how to leave the Union would be a serious blow to the standard of living, employment and growth. The average annual income of every British household in 2020 would be 3,700 less pounds than they might have been,” said Fairbairn.

the PwC report analyzes two scenarios: one optimistic, in which the point UK can reach quickly after Brexit free trade agreement with the rest of the EU; and a pessimistic, in which the negotiations are extended several years but finally the British services products and manage access to the rest of Europe.

In both cases, the outlook is negative for the British economy. Even given the most optimistic scenario, GDP would fall by 3% until 2020. If divorce is more complicated, GDP would drop in that period by 5%, the equivalent of one hundred billion ilbras. The unemployment rate in the country, located now around 5%, would rise between two and three points.

Regardless of Resignation
CBI report, the other factor that may encourage the campaign the erferéndum is the resignation last Friday night of Ian Duncan Smith, Minister for Work and Pensions. Although he did by disagreements with the Treasury for the past budgets, some analysts believe that the goal of Smith is to weaken the government and launched himself to ask for a vote to the British for leaving the EU.