The International Monetary Fund has reduced its forecast for the UK growth right after they warned the country that leaving the EU may cause immense loss to the British economy. Predictions for the UK economy’s growth is 1.3% for the following year which is 0.9 percentage points low compared to the World Economic Outlook’s (WEO) estimate back in April.
The analysis states that Theresa May’s government might face financial demands at a time where growth is slow and could also drive lower tax receipts and huge budget deficits. The IMF has further advised both EU and the UK to bring the uncertainty to an end and that the main priority is for continuous and expected transactions following the referendum in order to maintain trade gains between the two.
John McDonnell, British shadow chancellor stated that the IMF report is a hard blow to the British government and shows that their current plans are insufficient enough.
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