Mubasher: The International Monetary Fund (IMF) cut its forecasts for global economic growth for 2016 and 2017 to 3.1% and 3.4% respectively, with a 0.1% reduction for both years relative to the IMF’s April World Economic Outlook.
This change in forecasts is based on the unexpected outcome of the UK’s vote to leave the European Union (EU), which has created “a wave of uncertainty amid already-fragile business and consumer confidence”, the report stated.
“The Brexit vote implies a substantial increase in economic, political, and institutional uncertainty, which is projected to have negative macroeconomic consequences, especially in advanced European economies,” according to the IMF’s World Economic Outlook Update released on Tuesday.
