“The European Union’s (EU’s) decision to again extend the UK-EU Brexit deadline from 31 October to 31 January 2020 was not unexpected in current circumstances.”

This is according to Prof Raymond Parsons, a well-known economist and academic from the North-West University (NWU) Business School.

“Although regionally South Africa and the South African Customs Union recently concluded a trade agreement with the United Kingdom (UK) to ensure continuity and predictability in the tariff regime, all countries doing business with the UK and the EU have a general vested interest in an orderly and smooth Brexit, no matter what happens on 31 October,” he says.

According to Prof Parsons, the possibility of the UK “crashing out” of the EU without a deal would inevitably have unintended economic consequences for key components of the world trading system, even South Africa.

“This possibility would be even more worrying now, with world economic growth faltering, the persistent uncertainty around the US-China trade conflict, and fears of an EU recession emerging.

“While the decision to shift the Brexit deadline again does prolong uncertainty, it also gives the UK parliament more time to make clear what it wants, including the possibility of calling a general election.

“The EU’s 'flextension’ - as it is called - means the UK could leave before the new deadline if a deal is approved by parliament. A 'soft' Brexit outcome remains the possible reward for the additional uncertainty generated by the ongoing Brexit situation,” he concludes.