How Will Brexit Impact the UK Economy

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HOW WILL BREXIT IMPACT THE UK ECONOMY
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How will Brexit Impact the UK Economy
Introduction
Many scholars have put their voice on the potential effects that Brexit to the United
Kingdom. Because many economists had predicted both positive and negative outcomes from
the results of the European Union referendum, this research proposal seeks to put the economic
impacts of Brexit to the United Kingdom into perspective. According to Bergsten, (2017), after
the United Kingdom voted in support of leaving the European Union on 23 June 2016, the
United Kingdom began the process of leaving the single market. This caused uncertainty
between the UK and the EU with the many economists predicting recession out of this
uncertainty. With UK and EU not being in good terms about Brexit, a deal about the UK leaving
the EU was made. According to the made deal, the UK will be allowed to freely trade on a global
scale and even within a single market even if it’s not a member of EU according to Bruno et al.
(2016).
Background
According to Collinson, (2016) since the UK joined the EU in 1973, the UK referendum
has been by far the most important political result for the UK because of the prosperous future
that the UK will have after Brexit based on the statements of those advocating for Brexit.
However, there are a lot of impacts that Brexit will have on the relationship between the UK and
the EU and many types of research have been done to explain some of these economic impacts
of Brexit to the United Kingdom Dhingra et al. 2016. To help explain the findings of others
which is of the essence because it gives a more comprehensive account that enhances the
gatherings, this research will illustrate the quantitative findings using the qualitative data

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Dhingra et al. (2016). The people of United Kingdom will experience either immediate or long-
term effects of economic impacts of Brexit; therefore, it’s important to critically analyze these
economic predictions to help these people understand what is at stake.
Summary of the research
The people are of the United Kingdom are divided on whether the UK should or should
not leave the European Union. This research gives an overview of whether the vote by the UK to
leave the EU will be successful or not by obtaining a realistic argument on for and against Brexit.
The research will obtain realistic arguments through investigation of political factors that will
give a summary of the directions the government of the UK is seeking to take the economy.
Because the research will involve both mixed research methods and methods of analysis,
pragmatic paradigm of inquiry will be the most suitable for this study since it supports both the
methods of analysis and mixed research methods Dhingra & Sampson (2016). The verifiable
argument will then be made after both the quantitative and qualitative data has been explored
thoroughly.
Research question
Quantitative
1. What are the Brexit’s economic impacts to the United Kingdom?
Qualitative
2. How will be the economic relationship between the UK and the EU member states be after
the Brexit?
3. How will the deal between the UK’s agreement leaving the European Union affect other
countries around the globe?

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Literature review
The impacts of the outcome of Brexit to the people of United Kingdom has subject under
debate since June 23, 2016 when the UK held a referendum on its membership of the EU Ebell
& Warren, (2016). According to Emerson et al. (2017), by 2020, the Brexit would have
negatively impacted to the economy of UK because of economic uncertainty between the EU and
the UK that will have resulted to the less consumer spending in the UK. Goodwin & Heath,
(2016) further state that by leaving the EU, the UK will be losing free of charge, goods and
services as well as capital in the EU single market. This is so because previously, the UK had
various attractive services, for example, the UK financial services were used by the international
investors as a binding link between other countries and the EU Hobolt (2016). Therefore, Brexit
will make these services less attractive. According to Lawless& Morgenroth (2019) even though
there is scanty information on possible economic impacts that Brexit will have on the people of
united kingdom, but the depreciation of the sterling pound against the dollar that was witnessed
immediately after the June 2016 referendum means that Brexit could spell doom for the people
of UK. According to Los et al. (2017), the depreciation of the sterling pound immediately after
the June 2016 referendum represented a 12% decrease against the dollar than it was before the
referendum. This depreciation alone had many economic impacts on the people of the United
Kingdom. First, in a span of one year, the inflation rate was up to 2.6% as opposed to 0.5% the
previous year according to Kierzenkowski et al. (2016). Further to this, the real wage growth rate
declined to –o.5% from 1.5% the previous year McGrattan & Waddle (2017). Another area that
was affected by the depreciation of the sterling pound against the dollar is the output growth.
According to Oliver, (2016), in 2015, the GDP of United Kingdom was increasing by 1.7%,