London: Brexit may be postponed once again this week, perhaps by as much as a year. The British economy, though, will remain a prisoner of a confidence-sapping uncertainty. British Prime Minister Theresa May will ask for an extension to the April 12 Brexit date in an effort to find agreement among lawmakers on what a deal should look like. The EU is more inclined to grant a longer extension to make sure Britain has the time to sort out its political impasse.
While an extension reduces the likelihood of a ‘no-deal’ Brexit, which would see the country crash out of the EU on Friday with likely painful economic consequences, it prolongs the uncertainty for businesses. That uncertainty has led a drop in businesses investments, foreign investment, and consumer spending.