The analysis of the economic impact of Brexit on the European Union

The European Union has been considered over time a guarantor of the regional stability and prosperity, being also recognized as one of the most influential player in the global economic arena. However, the European Union has recently faced significant political and economic challenges, such as the migration and refugee crisis, the United Kingdom’s withdrawal, the increasing power of Russia and the enhancement of the terrorist threat. The purpose of this paper is to present the economic consequences of the United Kingdom's withdrawal from the European Union, a decision that represents a turning point in the history of over half a century of the regional group. In this regard, the study encompasses the critical review of the literature on this topic and the analysis of the relevant statistical data. The perspectives of theoreticians are extensive and sometimes diverging. While some analysts believe that Brexit will undermine the European integration project, others consider that the effects will be manageable by the remaining 27 Member States. Analyzing the statistical data on GDP, stocks of FDI, trade in goods and services, we have revealed that the United Kingdom plays an important role in shaping the economic power of the European bloc. Consequently, with the completion of Brexit, it is likely that the economic power of the European Union will diminish, particularly in terms of GDP and trade in goods and services.