Brexit Is Good For The UK – True Or False

The European Union Stars FlagThe truth about the Brexit subject, whether the focus the discussion is its positive or negative effects to the UK economy, or what to expect as a consequence of Brexit, is that they are all educated guesses. The vast majority of the bold statements made by economists and policy makers are simply educated guesses rather than gospel truth.

For instance, many economists predicted a mass exodus of international businesses from the UK to mainland Europe arguing that many of these businesses will seek to protect their access to the EU common market. However, to a large extent, this has not been the case. Multinationals that had established their headquarters in the UK have not left in droves. While some may argue that the UK has not actually left, hence these companies do not need to leave the UK in the meantime, it is still a pointer that these companies will look to keep a foothold in the UK, as long as possible, obviously subject to prevailing factors.

On the matter of the economy, according to UK’s Office for National Statistics, the gross domestic output in the last three months of 2016 grew by as much as 0.7%. In light of this statistics, one can argue that the Brexit effect on the economy has not been as profound as first anticipated by experts. Nonetheless, caution should be used whilst making such claims because, as mention earlier, the actual exit from the EU has not started as the Article 50 has not been triggered. The full extent of positive and negative effects of Brexit on the economy will only come to light once the UK fully disintegrates from the EU after two years of Brexit negotiations.

One front that made sure that the advocates of the Brexit carried the day during the referendum is the issue of migration. Brexit advocates argued that exiting the EU would enable Britain to control immigration. On face value, the Brexit ambiance has made the UK a less than stellar destination for immigrants.

It is estimated that net migration to the UK dropped below the 300,000 mark for the year ending September for the first time in three years. Immigration is thought to have been 596,000 while emigration is thought to have 323,000 people. However, further scrutiny has worried expert that the UK is losing talent and expertise in its work pool, which does not bode well with the technology-oriented economies that we are headed to. Additionally, some argue that the UK will not be able to control immigration fully if it still intends its citizen to access other EU countries as they do currently. In nutshell, there is no way of definitively determining whether Brexit is good for the UK. We have to wait and see.