Following the initial shock of the June 2016 #Brexit vote, the UK could finally be leaving the EU as early as next week. There is increasing speculation that Theresa May could trigger Article 50 this Tuesday and thus initiate the UK's exit from the european union. While there has been much debate about the impact of Brexit on the world economy, many believe the UK's exit may actually benefit the US economy.

Article 50 of the Treaty of Lisbon

In an effort to make the European Union more democratic, the member states signed the Treaty of Lisbon in 2009 and included a mechanism by which a nation could leave the European Union.

This mechanism was formalized in Article 50. By triggering this article, now commonly referred to as Article 50, the UK will formally initiate the process of leaving the EU. All proceedings could be completed within a short few weeks. Experts predict the UK could be "out of the EU" sometime in April 2017.

What effect will Brexit have on the US economy?

Ever since the June 2016 shock Brexit vote, Sterling has been in a slump and trading its lowest since 1985. While many have predicted stock market turmoil as a result of Brexit, some believe Brexit may actually benefit the US economy.

For starters, world market turmoil may entice traders to seek out safer options and opt for US stock instead creating an immediate benefit to the US economy. As European assets will appear somewhat uncertain, US assets may be considered more stable and attractive -- at least until the Brexit dust settles. This could result in a sharply increased inflow of cash into US stock markets.

Secondly, observers also predict that the UK will not receive a soft deal from the European Union. In an effort to prevent a mass exit from the Union, EU nations are expected to offer the UK a harsh deal. This may lead the UK to be a little isolated and perhaps more willing to make strong trade agreements with the US. The gap left behind by the UK could also allow the US economy to form stronger ties with the European Union.

Thirdly, many multi-national corporations and banks are also expected to leave London, now considered the world financial capital, and seek to establish headquarters either in other European cities or perhaps in New York City. Post- Brexit, London will be far less attractive a location, leaving the door wide open for other major cities to provide a strategically smart location. As an English-speaking City, with strong and lasting real estate value, New York City offers countless advantages and may edge out European cities like Paris or Frankfurt.

Lastly, investing in the US economy may just seem a safer bet than dealing with the uncertainties of a post-Brexit United Kingdom.

Brexit impact on US economy predicted to be small

Ultimately, experts believe that Brexit will have little impact on the performance of the US economy. If, however, as expected, US stock markets see a strong inflow of cash and New York becomes the new world financial capital, Brexit may strongly benefit the US economy. Even if only some large corporations and banks relocate their headquarters to the US, the economy will see growth and improvement in employment figures.

Experts continue to emphasized, however, that only 15% of the US GDP depends on international trade, minimizing the impact of Brexit even further. Finally, the turmoil in financial markets may postpone the Fed's planned interest rate increases, leaving US markets with plenty of cash.

Brexit -- nothing to worry about for the US economy

After the initial shock, there is a consensus among economists that Brexit will have little impact on the US economy and if anything, may actually provide considerable benefits. There seems to be little to worry about, and US markets are set to take Brexit in stride.
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