Global Economic Growth Will Be Lower Because of Brexit Vote, IMF Says
The unexpected vote creates "substantial" uncertainty and will harm growth.
July 19, 2016, 2:58 PM
• 2 min read
-- The global economy faces “a wave of uncertainty” in the wake of the United Kingdom’s referendum to leave the European Union, and for that reason, the International Monetary Fund (IMF) has cut its forecast for global growth -- saying world economies will grow by 3.4 percent next year.
In April, the IMF projected that growth would be 3.5 percent, but said that the vote, commonly called Brexit, “caught financial markets by surprise,” and creates “a substantial increase in economic, political, and institutional uncertainty,” and thus necessitated lowering the projection.