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    International Monetary Fund (IMF)

    Brexit-Driven Uncertainty Likely to Hurt UK, EU Economies - IMF

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    Uncertainty caused by the United Kingdom’s pending exit from the European Union will have negative costs for both the UK and EU economies, the International Monetary Fund said in its revised World Economic Outlook, released on Tuesday.

    WASHINGTON (Sputnik) — The IMF added that the impact of "Brexit" on the global economy remains unclear because London and Brussels have yet to determine a course for their future institutional and trade relationships.

    "Although financial market reaction to the result of the UK referendum has been contained, the increase in economic, political, and institutional uncertainty and the likely reduction in trade and financial flows between the United Kingdom and the rest of the European Union over the medium term is expected to have negative macroeconomic consequences, especially in the United Kingdom," the report said.

    In June, 52 percent of UK voters in a referendum chose to pull their country out of the 28-member European Union.

    The decision has caused economic turbulence in the UK economy, including a drop in the country’s stock indexes and a devaluation of the pound.

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