IMF to Slash UK Growth Forecasts in Wake of Brexit Vote

The IMF’s analysis of the impact of Brexit warned that leaving the bloc would deliver a “negative and substantial” blow to the UK economy.

by Szu Ping Chan

The International Monetary fund will slash its forecasts for UK growth this week as the impact of the Brexit vote triggers a wave of downgrades across Europe.

Christine Lagarde, the IMF’s managing director, warned that the Fund was also likely to cut its projections for world growth for the third time this year as global risks mount.

“I have very little hope that it will be revised up, and I have serious concern that it might be revised down,” she said last week.

In an update of its World Economic Outlook, the IMF is likely to cut its 2016 UK growth projection to below 1.7pc, from a forecast of 1.9pc in April.

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