The UK Economy and Brexit

Abstract

This paper reviews some important literature on the likely implications of Brexit on the UK economy, including that from some of the large forecasting organisations in the UK. Most of these forecasts suggest that the economy will be smaller than it would have been had the UK remained in the EU going forward, though the extent will depend on the trading arrangements which are put in place following Brexit. The paper also reviews research on the implications of Brexit on different household types and areas within the UK. Implications for foreign direct investment (FDI), emerging markets as well as SMEs are discussed, including the potential to damage important supply chains and just-in-time production methods.