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Monday, November 29, 2021

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    Brexit hits the British harder than Corona

    According to an independent British authority, Brexit will have significantly worse consequences for the country’s economy than the pandemic. The exit from the EU will reduce gross domestic product (GDP) by around 4 percent, said the head of the supervisory authority Office for Budget Responsibility (OBR), Richard Hughes, in a conversation broadcast on Thursday night on the BBC. The pandemic will reduce GDP by a further 2 percent.

    “In the long run, Brexit will have a bigger impact than the pandemic,” said Hughes. In its latest report, the advisory body had emphasized that supply bottlenecks due to stricter immigration rules as well as more tariffs and bureaucracy had exacerbated the situation in Great Britain since Brexit.

    Finance Minister Rishi Sunak presented his budget on Wednesday. In it he announced billions in aid for numerous industries as well as tax increases.

    The OBR then warned that the cost of living could rise faster than it had been in 30 years and that inflation could soar to 5 percent. The “Times” called Sunak’s tax hikes “immense”. The tabloid “Sun” criticized an “epidemic of government spending”.

    Sunak had painted a positive picture. He announced that the British economy will reach the pre-Corona level in 2022 and expects growth of 6.5 percent this year and 6 percent next year. (dpa)


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