Question: According to the International Monetary Fund(IMF) what will be the effect of Brexit on the progress of the global economy?
(a) Rapid growth in the economy
(b) Slow growth in the economy
(c) No effect on the economy
(d) None of the above
Ans: (b)
Related facts:
- Gerry Rice, Spokesman, IMF Communications Department during press conference said that Britain’s decision to leave the European Union(Brexit) has created “significant uncertainty” that will have repercussions not only for the UK and Europe, but also for the global economy.
- He has also mentioned that Brexit will led to Short-term global economic growth slow down.
- He mentioned that IMF “strongly supports” the commitments made and steps taken by major central banks, including the Bank of England, the European Central Bank, the US Fed and the Bank of Japan, among others, to provide liquidity and curtail excess financial volatility.
Reference:
http://www.imf.org/external/np/tr/2016/tr063016.htm
http://www.thehindu.com/news/international/brexit-imf-warns-of-repercussions-for-global-economy/article8796657.ece
http://www.business-standard.com/article/news-ani/imf-warns-of-repercussions-in-global-economy-as-after-effects-of-brexit-116070200490_1.html