LONDON (AP) – The International Monetary Fund warned Tuesday that a British exit from the European Union could inflict severe damage to the world economy by disrupting international trade.
Listing the June 23 referendum on membership as one-of-seven downside risks for the world economy, the global financial body said the national vote on whether to stay or go has already created uncertainty for investors.
“A British exit from the European Union could pose major challenges for both the United Kingdom and the rest of Europe,” the IMF said. “Negotiations on post-exit arrangements would likely be protracted, resulting in an extended period of heightened uncertainty that could weigh heavily on confidence and investment, all the while increasing financial market volatility.”
The IMF also said that an exit would curtail “key benefits from economic co-operation and integration.”
The warning echoes the British government’s position that leaving the EU would hit the economy hard. Treasury chief George Osborne described the comments as “stark.”