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KEY POINTS The U.K.'s exit from the European Union has already cost the U.K. a chunk of its economic output, according to the latest analysis by economists at UBS.

"U.K. gross domestic product (GDP) is already 2.1 percent lower in level terms than where it would have been without Brexit," UBS economists said.

"Investment is 4 percent weaker, inflation 1.5 percent higher, consumption is 1.7 percent lower and the REER (the real effective exchange rate) is 12 percent more depreciated," the report added.

The U.K.'s exit from the European Union has already cost the U.K. a chunk of its economic output, according to the latest analysis by economists at UBS. "U.K. gross domestic product (GDP) is already 2.1 percent lower in level terms than where it would have been without Brexit," UBS economists Pierre Lafourcade and Arend Kapteyn, and strategist John Wraith, said in a research note published Monday. "Investment is 4 percent weaker, inflation 1.5 percent higher, consumption is 1.7 percent lower and the REER (the real effective exchange rate) is 12 percent more depreciated," the report added.

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The economics team measured the costs of Brexit so far by analysing what the U.K.'s GDP would have looked like had the U.K. decided to remain in the EU. They based their methodology on a recent academic paper that essentially constructed "a U.K. 'doppelganger' out of GDP data from other OECD countries not affected by Brexit." "Using that methodology we can also construct counterfactuals for consumption, investment, credit, inflation and the exchange rate," the economists said. "To put that 2.1 percent cumulative decline in real growth into context, that's roughly a quarter to a third of the total Brexit costs estimated in the most pessimistic assessments prior to the EU referendum and almost equal to the full costs of some of the more optimistic assessments," the team noted. "Without Brexit, however, we think U.K. GDP could have been 100 basis points per year higher." Bad to worse? Brexit negotiations between the U.K. and EU have arguably gone from bad to worse with both sides failing to agree the terms of their divorce due on March 29, 2019. Divisions remain over the border between the Republic and Northern Ireland — which will become an EU external border — and the thorny issue of trading terms. Talks have reached an impasse with the EU's chief negotiator Michel Barnier rejecting U.K. Prime Minister Theresa May's so-called "Chequers Plan" that would see the country abide by a "common rulebook" for goods but not services.