IMF says UK leaving the EU will lead to negative economic consequences
Friday, May 13, 2016
, head of the (IMF), today said the (UK) voting to leave the (EU) would have negative consequences for the country's economy and the wider financial system.
An IMF report released by Lagarde said voting to leave the EU would cause "a protracted period of heightened uncertainty", created by the UK needing to negotiate a withdrawal from the EU. Agreements with 60 other countries who currently have trade agreements with the EU would also need to be reached if the UK was to continue trading with them on the same terms. The IMF has also identified the UK's large, the difference imports and exports, as a factor increasing the risks of a vote to leave.
These comments follow similar ones made by, the Governor of the , who also warned that leaving the EU could lead to a fall in the value of the . The Bank also estimated half of the currency's recent fall in value was caused by the uncertainty created by the referendum.
and , campaigning to leave the EU, responded by pointing out shortcomings in the IMF's previous predictions, such as the effect of the . Former commented, "There are plenty of respected individual economists, plenty of respected professional investors, and plenty of entrepreneurs who take a very different view from Christine Lagarde".
- "IMF says Brexit 'pretty bad to very, very bad'" — , May 13, 2016
- IMF warns EU exit risks London's status as financial hub" — , May 13, 2016. "
- Peter Spence. "Why does Christine Lagarde think the UK’s current account deficit could make Brexit worse?" — , May 13, 2016