An Analysis of Brexit’s Consequences on the United Kingdom’s Economy

Following the Brexit referendum decision made on June 23, 2016, much uncertainty surrounds the United Kingdom (UK) leaving the European Union (EU), particularly how that decision will impact its future economy. Due to high levels of globalization, genuine concern exists for the UK’s decision producing a global economic crash, similar to the financial crisis of 2008. Ultimately, the result of Brexit will depend largely on the policy created and implemented once the UK officially leaves the EU. If the UK is able to successfully navigate exiting the EU with little economic consequences, it is conceivable that other EU members could follow suit and want to leave the EU as well, which could cripple the integrity of the EU and the dynamics of Europe. Based on qualitative data analysis, this paper concludes that the UK leaving the EU will have minimal effects on the world economy, yet the ripple effect the Brexit referendum could initiate might have catastrophic effects on the European and world economies