The UK has agreed to delay ratification of their post-Brexit trade agreement with the European Union (EU), media reports said. Earlier, the EU asked the UK whether it could take some extra time to ratify the agreement by extending until April 30. Cabinet Office Minister Michael Gove announced the same recently claiming a delay in ratification was not the UK’s preferred outcome given the uncertainty it creates for individuals and businesses.
In a letter to European Commission Vice-President Maros Sefcovic, Gove said “I can confirm that the United Kingdom is content to agree that the date on which provisional application shall cease to apply … should be extended to 30 April 2021.” He also added, “extending the period of provisional application prolongs that uncertainty.”
Brexit could end up costing the UK billions of dollars, according to the Bank of England (BOE) governor. Governor Andrew Bailey said that Brexit could cost the UK economy the equivalent of $109 billion.
According to forecasts compiled by the Treasury, economists expect the UK GDP to expand by an average of 5.4 percent this year. Meanwhile, the Bank of England forecasts an economic growth rate of 7.25 percent in 2021.
A survey carried out by the Financial Times revealed that it will take at least 18 months for the UK economy to return to its pre-pandemic size and its recovery will lag behind that of its peers. More than 90 leading economists took part in the survey and they concluded that the UK’s economy will not regain its previous levels until the end of 2022.