Brexit uncertainty is hurting the UK economy says IMF

Brexit economy

The UK’s vote to leave Europe is already having a damaging effect on the UK’s economy despite a strong recovery in the world economy, according to The International Monetary Fund.

The IMF’s annual health check of the UK economy on Wednesday highlights the difficulties it sees for Britain as negotiations move to the second stage of talks which include a potential transition deal and the broad outlines of the UK’s future trading relationship with the EU.

The report found that growth in the first three quarters of 2017 was slower than the same period one year ago.

“Despite a strong recovery in global growth and supportive macroeconomic policies, the impact of the decision to exit the European Union has weighed on private domestic demand.

Developments with Brexit negotiations are a key uncertainty. Faster-than-expected progress towards a mutually beneficial economic outcome could buoy confidence. On the other hand, a breakdown in discussions could lead to a disorderly exit from the EU and sharp falls in asset prices.”

Read the full analysis from the International Monetary Fund.