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IMF says ‘all Brexit outcomes’ will entail costs for the UK

11:55 am, 17th September 2018

But the global fund warned that a more disruptive Brexit would lead to a “significantly worse outcome,” adding that the range of Brexit issues left to prepare for was “daunting”.

The IMF said it forecasts UK economic at 1.5% this year and next, “assuming the UK and EU reach a broad Brexit agreement.”

Its projections are down from the 1.75% growth seen in the 2016/7 financial year.

“Brexit-related facts are the driving factor for the slowdown,” it said.

Speaking at the UK treasury, IMF managing director Christine Lagarde said on Monday that closing a deal with the EU will be “critical” to avoiding very large costs on the UK economy.

Chancellor of the Exchequer Philip Hammond said the economy ‘stands fundamentally strong’, but it was important that the UK reduced its debt in the years ahead.

He said that while the IMF rightly points out that UK debt is too high, it is set to fall this year.

Mr Hammond warned that the country was at a “critical juncture”, which should not be put at risk in the final stage of negotiations with the European Union.

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