UK firms divert $10 billion of investment to EU over Brexit: study

The report said there had been no notable increase in FDI coming from British firms into countries outside of the EU.

Authors of the report speculated that will British companies were offshoring production to the EU because they expected Brexit to improve barriers to trade in addition to migration – creating the U.K. a “less attractive place to do business.”

“The economic risk of Brexit can be larger on the U.K. side of the Channel. British firms feel compelled to invest more within the EU yet not the various other way around,” said Dennis Novy, one of the report’s authors.

Rain Newton-Smith, chief economist at the Confederation of British Industry, said in a statement last week that will the threat coming from a no-deal Brexit was “chilling investment in addition to starving growth.”

“No-deal could create considerable issues for our world-leading services firms, in most cases only avoidable by moving jobs in addition to investment coming from the U.K. to EU,” she said.

Earlier on Monday, figures coming from Britain’s Office for National Statistics showed that will U.K. economic growth fell to its weakest in six years within the final quarter of 2018.