IMF Cuts Global Growth Forecasts on Brexit, Warns of Risks to Outlook > Full statement >spanner in the works
Brexit causes ‘substantial’ increase in economic, political, institutional uncertainty Global forecast for 2017 cut by 0.1 percentage point, to 3.4 percent If not for Brexit, global forecast would have been slightly higher The International Monetary Fund cut its forecasts for global economic growth this year and next as the unexpected U.K. vote to leave the European Union creates a wave of uncertainty amid already-fragile business and consumer confidence. “The Brexit vote implies a substantial increase in economic, political, and institutional uncertainty, which is projected to have negative macroeconomic consequences, especially in advanced European economies,” according to the IMF’s World Economic Outlook Update released today. [see bottom page] “Brexit has thrown a spanner in the works,” said Maurice Obstfeld, IMF Chief Economist and Economic Counsellor. And with the event still unfolding, the report says that it is still very difficult to quantify potential re...