Benjamin Born, Gernot Müller, Moritz Schularick, Petr Sedláček, 28 November 2017

It is hard to calculate the current cost of Brexit, because there is no obvious counterfactual. This column calculates the cost by letting a matching algorithm determine which combination of comparison economies best resembles the pre-referendum growth path of the UK economy. The difference in output between the UK economy and its synthetic doppelganger adds up to a loss of 1.3% of GDP, or close to £300 million per week, since the vote took place. This implies a cumulative cost of more than £60 billion by the end of 2018.