Saturday, June 18, 2016

IMF warns UK exit from the EU could give a blow to British economy – AméricaEconomía.com

London . One result for Britain leave the EU in a referendum next week can have an impact of more than 5 percent in the size of the British economy in 2019 regarding if maintained in the block of 28 countries he said the International Monetary Fund.

the IMF, which had previously warned that British and world economy would be hit if Britain left the EU, presented on Saturday a detailed analysis of how the decision would affect the fifth global economy.

If UK does agree a similar Norwegian relationship with the EU, its economic output by 2019 will probably be about 1.5 percent lower than if it remains as a full member, according the scenario of a “limited” impact of the IMF.

Norway is not a member of the EU, but has access to its single market in exchange for contributing money to the block and accept the principle of freedom of movement and some its rules and regulations.

Under the “adverse” scenario IMF, long and fruitless negotiations between London and Brussels that would lead to UK have to govern its trade with the EU standards World Trade organization, the economy would grow 5.5 percent lower at 2019.

“in the short term, the uncertainty generated by having to navigate a complicated process output and untested could be harmful to investment, consumption and employment (in the UK), “the IMF said in its report.

the agency, based in Washington, is one of several global institutions and governments have warned the risks of “Brexit”. The British economy slowed before the referendum and the Bank of England has warned that leaving the EU could push it into recession.

Opinion polls this week suggested that the option in favor of the block output has advantage over permanence, ahead of the vote on 23 June. The campaign was suspended after the murder of British lawmaker Jo Cox on Thursday.

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