Brexit and global growth

The IMF’s chief economist says that Britain’s vote to leave the EU has ‘thrown a spanner’ of the global recovery.

DAVOS/SWITZERLAND, 26JAN13 - Christine Lagarde, Managing Director, International Monetary Fund (IMF), Washington DC; World Economic Forum Foundation Board Member is seen during the Session 'The Global Economic Outlook' at the Annual Meeting 2013 of the World Economic Forum in Davos, Switzerland, January 26, 2013. Copyright by World Economic Forum swiss-image.ch/Photo Moritz Hager

After the global economy performed better than expected at the beginning of 2016, the fund has today slashed growth forecasts for the UK and the world, blaming the referendum result for ‘a substantial increase in economic, political, and institutional uncertainty, which is projected to have negative macroeconomic consequences.’

This is consistent with the IMF’s pre-Brexit prediction that a Leave vote would could trigger ‘a protracted period of heightened uncertainty’ and cause long-term damage across economic sectors.

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