LONDON: Brexit hurts prospects for growth,according to IMF.
“Further spillovers from the UK post-referendum situation, the refugee surge, or a heightening of security concerns could contribute to greater uncertainty, hurting growth and hindering progress on policies and reforms,” the report stated.
The decision of the United Kingdom to exit the European Union, also known as Brexit, will cause a decline in the area’s GDP growth next year, the International Monetary Fund (IMF) said in a report on Friday.
“Euro area GDP growth is expected to decelerate from 1.6 percent this year to 1.4 percent in 2017, mainly due to the negative impact of the UK referendum outcome,” the report stated.
The IMF noted that headline inflation will increase from 0.2 percent in 2016 to 1.1 percent in 2107.
