IMF Warn of Dangers of the UK Leaving the EU

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Christine Lagarde, the Managing Director of the IMF, said that she “had not seen anything that was positive about Brexit” in terms of economics and she warned that it would have an international impact.

Lagarde was speaking following the publishing of a report into the economic effects of a UK departure from the EU. The report noted that:

“A vote for exit would precipitate a protracted period of heightened uncertainty, leading to financial market volatility and a hit to output. Following a decision to exit, the UK would need to negotiate the terms of its withdrawal and a new relationship with the EU—unless it abandoned single market access and relied on WTO rules, which would significantly raise trade barriers”.

Lagarde rejected allegations that the IMF had been bullied into producing the report by the UK Treasury and replied “you don’t know the IMF!”. She added that the consequences of the UK leaving the EU would be “pretty bad to very, very bad”.

Vote Leave rejected the IMF’s economic input and said on Twitter:

“The EU-funded IMF is being used to bully the British people”.