LONDON: The United Kingdom has lost £6.6 billion ($8.7 billion) in economic activity every quarter since it voted to leave the European Union, according to S&P Global Ratings, the latest company to estimate the damage from Brexit.
In a report published on Thursday, the ratings agency’s senior economist, Boris Glass, said the world’s fifth-biggest economy would have been about 3 percent larger by the end of 2018 if the country had not voted in a June 2016 referendum to leave the EU.
Quarterly growth rates would have averaged about 0.7 percent, rather than 0.43 percent, he said.
“Immediately after the referendum, the pound fell by about 18 percent. This was the single most pertinent indicator of the impact of the vote and the drag it created, via inflation, has been spreading through the economy,” he said.
As imports became more expensive, inflation started to rise, curbing household spending. S&P estimated inflation was 1.8 percent higher than it would otherwise have been by the third quarter 2017.
The estimate is slightly lower than an assessment by Goldman Sachs earlier this week, which pegged the cost to the economy at about £600 million per week. That equates to £7.8 billion a quarter, according to Reuters calculations.
The S&P report was based on the Doppelganger approach, an econometric technique that used a synthetic UK economy based on the performance of other economies to estimate how the UK would have performed had it not decided to leave the EU.
The other countries included the United States, Canada, Japan, Ireland, Denmark, Portugal and Hungary.
UK losing £6.6bn pounds a quarter since Brexit referendum, says S&P
UK losing £6.6bn pounds a quarter since Brexit referendum, says S&P
- S&P says the world’s fifth-biggest economy would have been about 3 percent larger by the end of 2018 if the country had not voted in a June 2016 referendum to leave the EU
- ‘Immediately after the referendum, the pound fell by about 18 percent — this was the single most pertinent indicator of the impact of the vote’
Arab Energy Fund approved for Panda bonds, first MENA multilateral issuer in China
RIYADH: The Arab Energy Fund has received regulatory approval to issue Panda bonds in China, marking a significant step in linking Middle Eastern and Chinese capital markets.
This decision makes the Riyadh-based institution the first multilateral financial institution from the Middle East and North Africa region to secure such approval, granting it direct access to China’s domestic bond market.
According to a press release, the approval was granted by the Asian country’s National Association of Financial Market Institutional Investors, the regulator overseeing the interbank bond market.
This milestone reflects rapidly deepening ties between the Gulf Cooperation Council, especially Saudi Arabia, and China.
Recent high-level engagements have prioritized strategic investment and technology transfer in Vision 2030 sectors, resulting in dozens of agreements, and in December Foreign Minister Wang Yi described the China-GCC partnership as vital for safeguarding common interests and strengthening Global South resilience.
Under the program, TAEF is authorized to issue up to 10 billion Chinese yuan ($1.4 billion) in Renminbi-denominated bonds. The fund can issue these Panda bonds in multiple tranches over a two-year period, providing flexible, long-term capital for its strategic investments.
Vicky Bhatia, chief financial officer of the Arab Energy Fund, said: “This milestone allows us to further diversify our funding sources by tapping into a deep pool of Chinese investors, while laying a strong foundation for closer collaboration between a highly rated multilateral financial institution from the MENA region and China’s capital markets.”
This access represents a major diversification of TAEF’s funding strategy. Panda bonds provide a stable and direct source of Renminbi financing, strengthening the Fund’s capital planning capabilities as it supports projects across the energy spectrum.
With a 50-year history, strong governance, and a high international credit rating, TAEF invests in conventional energy, energy infrastructure, and broader energy transition solutions.
By entering the onshore Panda bond market, the Arab Energy Fund reinforces its position as a trusted multilateral partner and an active, innovative participant in global capital markets.
The move signals China’s growing role as a pivotal source of capital for international energy projects and highlights the increasing financial interconnectivity between the MENA region and Asia.
