Brexit throws spanner for 2016, 2017 growths – IMF – The Cable


The International Monetary Fund says Brexit constitutes “an important downside risk” for the world’s economy.

It said the exit of Britain from the European Union caught global financial markets off guard, shaking up equity and currency markets.

This was contained in the IMF quarterly update on Monday in Washington, US to its World Economic Outlook.

The IMF said it trimmed its outlook for global economic growth through 2017 due to economic uncertainty in the wake of last month’s vote for Britain to leave the EU.

The lender said it lowered its global 2016 growth forecast to 3.1 per cent, down 0.1 percentage points, from its estimate in April.

It said: “The revised projection for 2017 is 3.4 per cent, likewise down 0.1 percentage points.”

The report said further that “as a result, the global outlook for 2016-17 has worsened, despite the better-than-expected performance in early 2016”.

It said the decline portends to be most severe in Britain, where the IMF cut its 2016 growth forecast by 0.2 percentage points to 1.7 per cent.