IMF: Brexit to hit eurozone growth
Staff Writer | July 9, 2016
The International Monetary Fund (IMF) has cuts its economic growth forecasts for the eurozone in the wake of the UK's vote to leave the European Union.Article continues below
The eurozone is expected to grow by 1.6% this year and 1.4% in 2017. Before the referendum the IMF had predicted growth of 1.7% for both years. The IMF also revised down its 2018 growth forecast to 1.6% from 1.7%.
It said medium-term growth prospects for the 19-member bloc were "mediocre" due to high unemployment and debt.
Mahmood Pradhan, deputy director of the IMF's European Department, said the outlook could worsen if drawn-out negotiations between the UK and the EU led to a continuation of recent trends in financial markets - where investors have shunned riskier assets.
"If that risk aversion is prolonged, we think the growth impact could be larger and at this point, it is very difficult to tell how long that period lasts," he said in a conference call.
The revised 2017 figure was the IMF's "best case" scenario, assuming a deal was struck that allowed the UK to retain its access to the EU's single market, Mr Pradhan said.
However, if the UK decided not to maintain close ties with the EU and chose to rely on World Trade Organization rules, there could be "major disruptions," he said.
Pradhan added it was "very, very early days to have any strong sense of confidence" about what the eventual relationship between the UK and EU would be. ■ What to read next
Under an intense surge of arctic air, Friday morning will begin with the coldest temperatures so far this season across much of the central and eastern U.S. with blustery conditions and a piercing wind chill.
Latest U.S. rigs increased nicely
New York: More than $15.5 million awarded through Office of Strategic Workforce Development
Amgen will expand in North Carolina, create 370 jobs
NexGen Cabinets selects North Carolina for East Coast operation
UnitedHealthcare CEO Brian Thompson assassinated in New York
U.S.: Arctic outbreak of cold air will expand, dangerously cold wind chills expected
Finland, Sweden complete repairs on Baltic Sea cables
Black boxes from Vilnius plane crash to be sent to Germany
U.S.: Strong winds, lower elevation rain and higher elevation snow
U.S. oil rigs continue decline
EU ports handled 3.4 billion tonnes of freight in 2023
U.S. oil rig count down by 1, Canadian up by 1
Philippines breaks ground on massive 5 billion kWh solar farm
U.S. drillers cut oil and gas rigs this week, says Baker Hughes
Trending Now
Commission approves €1.9 billion German State aid in favor of DB Cargo
Pakistan proposes Russia take part in oil and gas exploration on its shelf
Michigan Governor met with business leaders and foreign officials in Spain
Spain passes measures to protect workers amid climate emergency
Ontario investing $1 billion to help municipalities build more homes
Today We Recommend Highlights
Amazon sued over slow deliveries to low-income areas in U.S.
Saudi Aramco acquires 10% stake in Renault-Geely JV
21CS will create 25 new jobs in Carteret County, North Carolina
Heidelberg Materials acquires Giant Cement to boost U.S. footprint
Commission finds Estonian State aid to agricultural company Tartu Agro to be incompatible State aid
Stellantis board accepts Carlos Tavares’ resignation as CEO
Joe Depa named as EY global chief innovation officer
Comviva appoints chief strategy, technology and transformation officer
Orion Innovation names Garima Singh chief people officer
Rohde & Schwarz appoints Markus Fischer as COO
Greece to repay $5.3 billion bailout debt early
Fraser Institute: Canada’s debt ranking falls from best in G7 to 7th worst
Kuwait reports $5.2 bln budget deficit in FY 2023-24
Eurozone reports modest Q1 GDP growth, stable annual inflation
Italy sees faster economic growth in Q1
Lockton revenue $3.55 billion
Motorcar Parts of America Q4 sales $189.5 million
Limoneira Q2 revenue $44.6 million
Lululemon athletica Q1 revenue increased 10% to $2.2 billion
PVH Q1 GAAP EBIT $205 million
Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
Brazil unveils investment plan to spur agro-industrial development
Government pays out £57 million to farmers affected by flooding
Canada confirms new case of Dermo disease in oysters
Bulgaria, Romania demand protective measures against Ukrainian honey imports
Malaysia invests $2.55m in 2025 to boost onion production and reduce imports
Employers prefer younger job candidates for AI roles although experienced workers perform same or better
Study finds workers misjudge wage markets
Some organizations may need to expand their hierarchical structures earlier than others
Study finds there's right way and wrong way to deliver negative feedback in workplace
Allyship is critical and its needs appreciation
BHP, Vale agree to pay $30B damages for Brazil dam disaster
Commission fines České dráhy and Österreichische Bundesbahnen €48.7 million over collusion to exclude common compe
SEC charges Keurig with making inaccurate statements regarding recyclability of K-Cup beverage pod
SEC charges John Deere with FCPA violations for subsidiary’s role in Thai bribery scheme
AG Bonta secures $3.9 million settlement with cryptocurrency company Robinhood
Magazine
Morocco’s first Radisson branded hotel opens in Casablanca
Buna channels, an unreal and beautiful part of Bosnia and Herzegovina
JW Marriott unveils Mindful Haven with opening of JW Marriott Hotel Nairobi
Sotheby's Sports Week returns with fantastic artifacts
Red Roof properties open in Michigan
2025 Chevrolet Equinox stands apart with fresh looks and capability
Hill Helicopters HX50, luxury in the sky
Opel Movano becomes fully equipped camper van
Porsche Panamera, new hybrid variants
Dodge Charger, 670 horsepower of electric
Embellish your home with PVC panels
You'll have to hurry if you want one of 20 new Louis Vuitton watches
Luxury duvet looks good, fells good and keeps you healthy
Vacheron Constantin, watches for life and more
Schüller kitchens, where functionality marries design
reMarkable 2, monochrome tablet for your thoughts and your eyes
OnePlus Ace 3V, first with Snapdragon 7 Plus Gen 3
ASUS Zenfone 11 Ultra, flagship with a reason
Samsung Galaxy S24 is photography powerhouse
Casette tapes are making a big comeback, and so are portable players
One more barrier to developing vaccine for HIV removed
Rwanda begins world's first clinical trial for treatment of Marburg virus disease
Rwanda restricts gatherings amid Marburg virus outbreak, to begin trials of vaccine
Teksas Attorney General reaches settlement in first-of-its-kind healthcare generative AI investigation
Potentially deadly fungal disease spreading in California
Einstein Telescope step closer
Exoplanet-hunting telescope to begin search for another Earth in 2026
India to build first phase of its own space station by 2028
Roscosmos chief approves schedule of creating Russian orbital station through 2033
Potentially habitable 'exo-Venus' with Earth-like temperature discovered