EU exit could spell disaster for Britain.
Published on 12.04.2016 23:39

The British pound came under pressure today after the world’s monetary watchdog warned that an exit from the EU could spell disaster for the British economy.

At 8.30pm (GMT) the pound was trading at US US$1.4268c after reaching a low of US1.4192 earlier in the day.

In a statement The International Monetary Fund said Tuesday that if Britain decides to leave the EU, it risks severely damaging the global economy in one of the strongest voices yet about a possible European exit.

Such a vote “could do severe regional and global damage by disrupting established trading relationships” in the world economy, the IMF noted in its quarterly world economic outlook.

 “A British exit from the European Union could pose major challenges for both the United Kingdom and the rest of Europe,” the IMF said.

The possible result, which could go either way surrounding the June 23 referendum is already taking its toll on the U.K. economy, with the IMF slashing its growth forecasts 1.9% from 2.2%.

 “It’s obvious that there’s a lot of uncertainty at the moment about what will happen in June that it is weighing on confidence and investment in the U.K.,” noted IMF chief economist Maurice Obstfeld..

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Andrew Masters

Analyst

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