Britain’s Prime Minister David Cameron speaks during a press conference after the summit of the leaders of the Group of Seven industrialized nations in Shima, central Japan, Friday, May 27, 2016.
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“While there is much uncertainty about the precise economic effects of an exit from the European Union, they are likely negative and substantial”, the International Monetary Fund concluded.
She said most economists had concluded that a “withdrawal of a member” would have negative effects and that was “compelling, even if you discount them for sometimes having the wrong forecasts”.
While the Washington-based International Monetary Fund cautioned that the decision was for the British voters to make, International Monetary Fund experts believe that “the net economic effects of leaving the European Union would likely be negative and substantial”.
Lagarde said the greater volume of business associated with being a member of the European Union would not have occurred otherwise, adding that with more trade comes more investment. The fund also warned it could erode London’s position as a financial center and cause “sharp” falls in house and equity prices. But those savings will likely be offset by losses triggered by a decline in trade and investment, the report said.
Acknowledging that refugee and migration issues play an important role in the Brexit debate, Lagarde urged British voters to take the immigrants issue in the positive spirit and acknoweldge the role they play in the economy and society, Bloomberg reported.
“A “leave” vote in the United Kingdom referendum, or even a close result in favor of remaining, could exacerbate these tensions, contributing to further Euroscepticism and uncertainty”, the Fund said.
It said a pro-Brexit vote on June 23 could exacerbate that trend.
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Speaking in Vienna, IMF Managing Director Christine Lagarde noted the organization she leads had already warned of the economic costs involved in leaving the EU. We can stop sending the £350 million we pay Brussels every week.
