What is the meaning of Brexit?

Brexit is a term which is used for withdrawal of Britain from the European Union as per a popular referendum which was held on June 23, 2016, in which 51.9% of the electorate voted to leave the EU. The government of Britain invoked Article 50 of the Treaty of European Union on March 29, 2017, and is thus in the process of leaving EU by March 2019. The UK will not avail membership of customs union after the exit and also vowed to call back the European Communities Act of 1972. It will also include the present European Union law into UK domestic law. Britain has officially started the negotiations with EU regarding Brexit since June 2017 and has also created a new department namely the Department for Exiting the European Union.

Despite the above proceedings, it is widely felt that Brexit will spell a reduction in UK’s real per-capita income both in medium and long-term. It will have a significant impact on the country’s GDP as well.