(VOVWorld) - On Tuesday, the International Monetary Fund (IMF) cut its forecasts for global economic growth this year and next year because of the UK's vote to leave the EU.
|
IMF cut its forecasts for global economic growth this year and next year because of the UK's vote to leave the UK. (Photo: Getty Images) |
According to the IMF, the global economy is projected to expand 3.1 percent this year and 3.4 percent in 2017, a 0.1 percentage point reduction for each year relative to the IMF’s previous forecasts.
The Fund said Brexit could reduce the UK’s economic growth by 1 percent in 2017. It said the uncertainty following the UK referendum could result in a significant drop in domestic demand.
The IMF raised its 2016 growth forecast for the Middle East and North Africa because of a rebound in oil prices, but maintained its cautious outlook for Saudi Arabia.