IMF Warns of Repercussions for Global Economy: Brexit [ Current Affairs ]
The International Monetary Fund (IMF) has warned that Britain decision to leave the European Union (EU) has created significant uncertainty. Its effects not only UK and Europe, but also for the global economy.
The International Monetary Fund (IMF) is an international Financial institution.
Formation: 27 December 1945
- Promote international monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
Headquartered: Washington, D. C.
Membership: 189 countries
IMF warns repercussions for global economy:
- IMF predicts that macroeconomic and financial market impacts in the UK and EU Because of Brexit will dilate outward across the world.
- IMF has policy makers to remain prepared to act:
- Impact on financial market confusion and
- Higher uncertainty to materially weaken the global outlook.
- Long periods of uncertainty and associated declines in business and consumer confidence because of Brexit would lead to lower growth.
- IMF policymakers in EU and UK to play key role in help to reduce the uncertainty during this period.
- IMF inspires UK and EU to work together in an effort to effect a smooth and predictable transition.
- Brexit means “British exit”.
- In June 23, 2016 by British voters opinion, to exit the European Union.
Impact on Brexit in economy:
- Impact on currencies, causing the British pound to fall to its lowest level in decades.
- EU countries have every incentive keep trading with the UK, which is a large importer of goods and services.
- There is ongoing uncertainty over what will happen when Britain leaves the EU because it has to make new trade agreements with the rest of the world.
- Rising level of uncertainty, both financial and political in EU and UK.
- Published on: July 5, 2016