Brexit Delay Better than No-Deal Exit for Global Economy: IMF
Arslan Butt • 1 min read
IMF Managing Director Christine Lagarde has stated that the Brexit delay is better for the global economy than Britain having a no-deal exit from the EU. Addressing a press conference in Washington, Lagarde also commented that the agreement to delay Brexit is not enough of a move towards resolving issues between Britain and the EU.
EU leaders have agreed to extend the Brexit deadline by another six months, giving Britain this extra time to prepare for the departure properly. Ever since Brexit was announced three years ago, British economy and businesses have weathered quite a bit of uncertainty. According to BOE Governor Mark Carney, this has hurt investment and has even affected economic productivity significantly.
The IMF recently cut its global growth forecast for 2019 to 3.3%, and one of the economic risks that prompted this cut was the uncertainty surrounding Brexit. Things, however, are expected to get better next year, as the IMF projects that the global economy could grow by 3.6% in 2020.