BRITAIN's economy will grow at a slower pace in the next two years following the vote to leave the European Union (EU), the International Monetary Fund (IMF) claimed today.
Christine Lagarde, head of the IMF
The fund today used an update on the world economy to talk down the UK and its decision to exit the EU, cutting Britain's growth forecast for this year by 0.2 percentage points to 1.7 per cent.
The prediction is that growth next year will be by 0.9 percentage points lower at 1.3 per cent.
The prediction is that growth next year will be by 0.9 percentage points lower at 1.3 per cent.
The Washington-based fund said had been prepared to upgrade global growth projections slightly but then said "Brexit has thrown a spanner in the works".
IMF chief economist Maury Obstfeld said: "Naturally, the direct effects specifically due to Brexit are greatest in Europe, especially the United Kingdom."
IMF chief economist Maury Obstfeld said: "Naturally, the direct effects specifically due to Brexit are greatest in Europe, especially the United Kingdom."
"Our projections for other areas are little changed by Brexit.
"Despite an uneven distribution across regions of the world, the overall growth downgrade in our baseline global projection is moderate, reflecting among other things a relatively benign assessment of Brexit's negative impact."
But it is not the first time the IMF has talked down Britain's economy and been proved wrong after the UK was one of the fastest growing developed countries in recent years.
Critics today insisted the UK was at the start of an exciting future outside the EU.
UKIP employment spokeswoman Jane Collins MEP said: "The spanner in the works for the IMF is that the UK voted to reject being governed by the EU, the IMF's best buddy on the international stage."
"We can see from news of investment into the UK, particularly in Yorkshire where I live, and companies like Easyjet and HSBC which have not left the UK in the wake of Brexit, that what we have done is given ourselves a great opportunity for real growth, not growth based on credit and house prices.
"What the plunge in confidence is really about is the failure of the EU project.
"We can see from news of investment into the UK, particularly in Yorkshire where I live, and companies like Easyjet and HSBC which have not left the UK in the wake of Brexit, that what we have done is given ourselves a great opportunity for real growth, not growth based on credit and house prices.
"What the plunge in confidence is really about is the failure of the EU project.
"As the US chief negotiator for TTIP said, the EU without the UK is like the US without California.
"We are at the beginning of a process of renegotiation including some really exciting opportunities with countries outside the EU and when they bear fruit our economy will soar."
She added: "Quite frankly the quality of growth forecasts has been as useful as a chocolate fireguard."
The Treasury insisted that Britain is open for business with the economy in a better position than it was in 2010.
A spokeswoman said: “The decision to leave the European Union marks a new phase for the British economy, but the message we take to the world is this: our country remains open for business.
"We are the same outward-looking, globally-minded, big-thinking country we have always been.
“As the Chancellor has said, our absolute priority is to send a clear signal to businesses both here and across the world, that we are open for business and determined to keep Britain and attractive destination for investors from overseas.
"We are stronger than we were in 2010 and well-placed to rise to the challenges ahead."
http://www.express.co.uk/finance/city/690987/IMF-talks-down-Britain-s-economy-again-and-cuts-growth-forecast
"We are the same outward-looking, globally-minded, big-thinking country we have always been.
“As the Chancellor has said, our absolute priority is to send a clear signal to businesses both here and across the world, that we are open for business and determined to keep Britain and attractive destination for investors from overseas.
"We are stronger than we were in 2010 and well-placed to rise to the challenges ahead."
