|BREXIT THROWS 'SPANNER IN THE WORKS' OF GLOBAL GROWTH|
Aruba, July 19, 2016 - The International Monetary Fund (IMF) has said the UK's decision to leave the European Union has "thrown a spanner in the works" of its global growth forecast.
Instead of predicting 3.2% growth in 2016, the IMF's World Economic Outlook (WEO) now expects only 3.1%.
It says the UK will be the worst effected of all the advanced economies.
Its 2017 UK growth forecast has been slashed from 2.2% to 1.3% and this year's has been cut from 1.7% to 1.5%.
The IMF's global growth forecast for 2017 has also been revised down from 3.5% to 3.4%. Before the referendum vote on 23 June, the IMF says that the global economy had been showing promising signs of growth.
"The first half of 2016 revealed some promising signs, for example, stronger than expected growth in the euro area and Japan, as well as a partial recovery in commodity prices that helped several emerging and developing economies," Maury Obstfeld, IMF Economic Counsellor and Director of the Research Department said in a statement.
"As of June 22, we were therefore prepared to upgrade our 2016-17 global growth projections slightly.
"But Brexit has thrown a spanner in the works."
Read more at: http://www.bbc.com/news/business-36834977