XBREXIT AND THE REORIENTATION OF THE UNITED KINGDOM WITHIN THE WORLD ECONOMY

The United Kingdom’s decision to leave the European Union marked a structural break in its economic model that had been shaped by more than forty years of deep regional integration. EU membership influenced the UK economy not only through tariff-free trade, but through regulatory harmonisation, integrated supply chains and the UK’s role as a hub for foreign direct investment targeting the European market. Brexit therefore represented a disruption to the institutional foundations of economic activity rather than a marginal policy adjustment. While disintegration awarded UK with sovereignty and the opportunity to pursue an independent global strategy, the economic evidence since the 2016 referendum indicates that Brexit has constrained growth, altered firm behaviour and overall weakened Britain’s international economic influence.