EU says Brexit could shave 2.5 percent off UK GDP by 2017

BRUSSELS (AP) – The European Union reckons that Britain’s decision to leave the 28-country bloc could see up to 2.5 percent shaved off the country’s economic output through next year.

In a preliminary assessment of the costs of so-called Brexit, the EU’s top economy official said the increased uncertainty related to the decision to leave in the June 23 referendum will reduce Britain’s GDP between 1 and 2.5 percent by 2017 compared with having remained.

Pierre Moscovici also said Monday that the GDP for the remaining 27 EU countries will be reduced by between 0.2 percent and 0.5 percent over the same period.

However, he insisted that these weren’t official forecasts and could be changed “if we are capable of limiting uncertainty and delivering the proper policy response.”