On June 23, 2016 the United Kingdom shocked the world by voting to undo their relationship with the European Union. Despite public opinion polling consistently showing that the vote to leave would be defeated, while elites and academics continued to warn against leaving, all the numbers proved incorrect with the resounding decision to leave.
Projections had been created which anticipated economic turmoil, the United Kingdom economy as well as the economies of all of Europe were expected to be destroyed by the impending independence. A recession was considered to be imminent and extreme volatility was not just projected but also expected.
However since the vote took place, the British economy has virtually not seen any of the problems which had been anticipated by the well connected. As the economy is faring much better than was previously expected, the Bank of England now appears to not be in the process of loosening monetary policy which implies a strong economy moving forward.
Although the vote occurred months in the past, they still are not in the process of officially leaving the Union. It is expected that they will begin this process until about March of this year. Once the process begins it will take approximately two years to finalize all formalities of the exit.
According to recent polling from Reuters, most economists believe that in the end there will be a bilateral trade deal created. This type of deal is one which has been pursued by a number of nations, among other aspects it would make it easier to expand trade and access to goods produced by members of the European Union. In the end this is the scenario which most economists projected but there are a number of other options on the board.
Moving forward, it will be compelling to see how the British economy responds once they become fully separate from the European Union. The “Brexit” vote has oftentimes been compared to numerous other right winged, nationalist movements across the world in recent times, most evidently the election of Donald Trump as President of the United States. Similar to the vote regarding Great Britain, there have been numerous projections of economic issues in the United States over the coming years. But once the election has followed through many of the projections have already proved to be not true. Most specifically in the United States after expectations of the stock market being hit hard due to potential instability the market has continued to reach record highs since the election.
What do you think? Let HYPELINE know what you expect in the comments!