How the UK’s Options for Rebuilding Ties With Europe Stack Up

Leaving the European Union has cost the UK 2% to 4% of forgone economic output but almost half can be recovered by improving trade with the bloc, according to analysis by Bloomberg Economics for the 10-year anniversary of the Brexit referendum.

Its estimate of the damage is slightly lower than the Bank of England’s 3.5% of GDP and the 4%used by the Office for Budget Responsibility. Even so, the consequence of Brexit has been “significant and negative,” the report’s authors write.

“The economy is smaller compared to a world where it remained part of the bloc.” In terms of ...