House Prices and Stock Market Will Tumble if UK Votes for Brexit, IMF Warns

Christine Lagarde, head of the International Monetary Fund

by Szu Ping Chan

A Brexit vote would only have negative economic consequences for the UK and could trigger a downward spiral of plummeting house prices and lower growth, the head of the International Monetary Fund has warned.

Christine Lagarde said the impact on the economy of leaving the EU ranged from “pretty bad” to “very, very bad”, depending on the trade deals that Britain forged.

Echoing Mark Carney, the Governor of the Bank of England, Ms Lagarde said the “serious disruption” to activity in the immediate aftermath could even throw Britain into recession.

The IMF said next month’s referendum posed the “largest risk” to the UK economy as it warned that a vote to leave would “precipitate a protracted period of heightened uncertainty”.

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