Call for in­terim phase to smooth way for Brexit

The Star Early Edition - - BUSINESS REPORT -

A TRAN­SI­TION phase was nec­es­sary to limit the neg­a­tive im­pact of the UK’s move to leave the EU, Mo­men­tum In­vest­ments said in a note yes­ter­day.

In De­cem­ber, min­is­ters in the Bri­tish Par­lia­ment were asked to vote on whether or not they sup­ported Brexit. An over­whelm­ing ma­jor­ity of 461 min­is­ters en­dorsed it, while 89 min­is­ters voted against it.

“Prime Min­is­ter Theresa May has set March 31 as the dead­line for in­vok­ing Ar­ti­cle 50, im­ply­ing that Bri­tain’s exit from the EU will be made of­fi­cial no later than April 2019.

“Agree­ing on new trad­ing re­la­tion­ships, es­tab­lish­ing tar­iff agree­ments and ne­go­ti­at­ing bar­ri­ers to en­try will likely re­quire more time. A tran­si­tional phase could limit the neg­a­tive im­pact on growth.

“Though fur­ther stim­u­lus, higher ex­ports and in­creased tourism are likely to rule out a re­ces­sion in 2017, we do an­tic­i­pate some fall­out from the Brexit vote as firms’ con­cerns over dis­rupted re­la­tions with the EU de­lay in­vest­ment and un­cer­tainty damp­ens con­sumer con­fi­dence,” Mo­men­tum said. – Siseko Njobeni

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