IMF warns against significant economic risks of Brexit

April 12, 2016 22:15

Britain's possible exit from the European Union "could do severe regional and global damage" by disrupting international trade relations and poses the biggest risk to the global recovery, the International Monetary Fund

warned on Tuesday.

"A British exit from the European Union could pose major challenges for both the United Kingdom and the rest of Europe," IMF chief economist Maurice Obstfeld said in its latest 'World Economic Outlook'.

"The planned June referendum on European Union membership has already created uncertainty for investors; a 'Brexit' could do severe regional and global damage by disrupting established trading relationships," the IMF said.

Slashing the global growth forecasts and for the UK as well as other advanced economies, the Washington-based financial institution said Britain voting to leave the EU posed one of the biggest risks to the global recovery.

The UK economy is now expected to grow by 1.9 per cent this year, according to the IMF.

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