HELSINKI: The International Monetary Fund (IMF) on Tuesday revised down its forecast for global growth in 2016 and 2017 in view of the uncertainty surrounding the United Kingdom’s exit from the European Union. The IMF expects the global economy to grow 3.1 percent in 2016 and 3.4 percent in 2017, both 0.1 percent lower than its forecasts in April.
“The outcome of the U.K. vote, which surprised global financial markets, implies the materialization of an important downside risk for the world economy. As a result, the global outlook for 2016-2017 has worsened, despite the better-than-expected performance in early 2016,” the IMF said.
The uncertainty surrounding the Brexit is projected to take a toll on confidence and investment, including through its repercussions on financial conditions and market sentiment more generally, it added.
