International Monetary Fund Restates Recession Warning If U.K. Leaves the European Union
The International Monetary Fund said that next week's vote to exit the European Union could leave the economy of Britain five percent or more smaller by 2019 compared to it remains in the twenty eight nations pool.
This is not the first time when the IMF has warned against Britain's economy as well as the global economy being hit by a so-called Brexit. On Saturday, the agency gave a detailed analysis of how the "Leave" vote could affect the fifth largest economy in the world.
The IMF says, in case Britain could have a relation with the EU like Norway, then its economic output is likely to be about 1.5 percent smaller by 2019 compared to if it remains a full member.
Norway, which s not a full member in the EU bloc, has access to its single market and in return contributes money to the twenty eight nation pool. It accepts its principle of freedom of movement and a number of of its other rules and regulations.
In its report, the IMF said, "In the short run, the uncertainty generated by navigating a complicated and untested exit process could be damaging for investment, consumption, and employment (in Britain)."
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