Investment held back

Brexit wipes £3bn from Scottish economy say economists

Brexit protest and march

Demonstrations question the value of Britain’s withdrawal (pic: Terry Murden)

Brexit uncertainty has wiped about £3 billion from the Scottish economy as investors delay decisions, according to new research.

It has left the economy 2% smaller than it would have been, says the Fraser of Allander Institute.

However, it is possible that much of this investment will be releases once the fog clears.

The FAI report coincides with analysis from the GMB Union claiming that the Brexit deal could put up to 329,400 jobs in Scotland at risk.

In its latest Economic Commentary, supported by Deloitte, the University of Strathclyde-based FAI points out that even ratification of the deal in the coming weeks will not mark the end of the challenges facing Scottish businesses. 

Professor Graeme Roy, director of the Institute, said: “There are signs that Boris Johnson may be able to secure safe passage of his new deal with the EU, albeit perhaps not by the 31 October deadline, so that the UK will finally leave the EU three-and-half years from the Referendum.

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