Brexit refers to the United Kingdom's withdrawal from the European Union, a political and economic union of 27 member states located primarily in Europe. The UK joined the European Economic Community (EEC), a precursor to the EU, in 1973, and remained a member for 47 years. In a 2016 referendum, 52% of British voters chose to leave the EU. The UK officially left the European Union on January 31, 2020, followed by a transition period that ended in January 2021.
The consequences of Brexit have been broad and far-reaching, creating barriers to trade and cross-border exchanges that did not exist prior to January 1, 2021. Economists largely believe Brexit has damaged the UK's economy and reduced its real per capita income in the long term. Studies indicate that Brexit was a key contributor to the 2023 cost-of-living crisis, with the average citizen being nearly £2,000 worse off. The UK's departure from the single market has led to a decline in exports, and while new trade deals with non-EU nations have been pursued, they haven't fully compensated for these losses. Immigration patterns have also shifted, with a decrease in EU immigrants and an increase in net migration from non-EU countries.