WASHINGTON (Sputnik) — Pradhan noted that these economic conditions have contributed to an expected economic decline in the area next year.
"We are worried about investment, confidence more generally could affect consumer confidence and… lead to weaker investment," Pradhan stated. "At the same time, there is a substantial rise in risk aversion in financial markets."
The IMF noted that inflation will increase from 0.2 percent in 2016 to 1.1 percent in 2017.
On June 23, a nationwide referendum was held in the United Kingdom, in which 51.9 percent of voters supported the country withdrawing from the European Union.