IMF warns of negative impact of Brexit on British economy

The International Monetary Fund joined on Friday the warnings about the negative impact of the Brexit from the European Union on the country's economy.

IANS May 13, 2016 20:04:31 IST
IMF warns of negative impact of Brexit on British economy

London: The International Monetary Fund joined on Friday the warnings about the negative impact of the British exit from the European Union on the country's economy.

IMF warns of negative impact of Brexit on British economy

AFP

IMF managing director Christine Lagarde presented on Friday in London a report on Britain's economic situation.

Lagarde warned Britain may suffer "a protracted period of heightened uncertainty, leading to financial market volatility and a hit to output".

The report shows the organisation of the referendum on whether Britain should stay in or leave the EU has "an impact on investment and hiring decisions".

"This could entail sharp drops in equity and house prices, increased borrowing costs for households and businesses, and even a sudden stop of investment inflows into key sectors such as commercial real estate and finance," Lagarde advised.

She warned that Brexit could have "negative and substantial" effects on international markets.

The reports said "London's status as a global financial centre could also be eroded, as Britain-based firms may lose their 'passporting' rights to provide financial services to the rest of the EU."

The IMF gave this warning after the Bank of England predicted on Thursday that the possibility of Brexit will slow the growth of the British economy.

Updated Date:

also read

Tunisian president Kais Saied suspends parliament, dismisses PM Hichem Mechichi
World

Tunisian president Kais Saied suspends parliament, dismisses PM Hichem Mechichi

Saied said he would take over executive power "with the help" of a government, whose new chief will be appointed by the president himself

Indian student in China found dead, cause of death under probe
World

Indian student in China found dead, cause of death under probe

Aman Nagsen of Gaya, Bihar, was a student of Business Administration in the Tianjin Foreign Studies University. He was among the few Indian students who remained in China through the coronavirus pandemic while the rest left for home.

Uneven COVID-19 vaccine distribution may hamper economic recovery in developing nations: IMF
science

Uneven COVID-19 vaccine distribution may hamper economic recovery in developing nations: IMF

IMF chief economist Gita Gopinath flagged the "widening gap" as advanced economies grow faster and developing nations, especially in Asia, slow.