View more on these topics

IMF downgrades global growth on Brexit and US slowdown


The IMF has downgraded global growth to 3.1 per cent for 2016 due to the UK’s vote to leave the European Union and weaker-than-expected growth in the US.

The forecast has been revised down 0.1 percentage point from its April forecast.

Its outlook for 2017 has been revised down by the same amount, however, growth is expected to be slightly on this year at 3.4 per cent.

While the IMF has slashed the UK’s growth forecast for 2017, it has gone from anticipating a recession in the case of a Brexit vote to arguing that the UK will be the fastest growing G7 country this year.

Regardless, it expects UK growth to slow to 1.8 per cent this year compared to 2.2 per cent in 2015.

By 2017, it expects growth to slow to 1.1 per cent and for the UK to fall to fifth in the G7 for growth, behind the US, Canada, Germany and France.

The UK and Germany were the only G7 countries the IMF expects will see lower growth in 2017 than in 2016, with the UK experiencing the most significant slowdown.

The IMF says in its report: “These developments have put further downward pressure on global interest rates, as monetary policy is now expected to remain accommodative for longer.”

It has warned the US Federal Reserve that increases to the policy rate should be “gradual and tied to clear signs that wages and prices are firming durably”.

It says the market reaction to the Brexit shock was “reassuringly ordered”, but said the ultimate impact remained unclear due to uncertainty about trade and institutional relationships between the UK and the EU.

The report highlighted Asia, particularly India, as a place of robust growth.


Stephanie Flanders 700 x 450

Stephanie Flanders: The world is still looking for a Plan B

The UK will be living the consequences of Brexit for years to come – yet the rest of the world seems to have moved on. At least that is the conclusion you would draw when observing recent moves in global stock markets. That said, there is no getting away from the fact the global recovery […]

Christine Lagarde 2013 700x450.jpg

IMF: Brexit could ‘erode’ London’s status as finance hub

The International Monetary Fund has warned London’s status as a global financial centre would be damaged by a vote to leave the European Union. In its annual report into the UK’s economy, the IMF says leaving the EU would have “a negative and substantial” effect on economic growth, while also hitting London’s attractiveness as a […]


IMF warns Brexit could cause severe global damage

A vote for the UK to exit the European Union could do “severe regional and global damage”, says the IMF, as it downgrades its global growth forecast for the second time this year. A vote for Brexit at the June referendum would disrupt established trading relationships and add to political strains in Europe stemming from the Syrian […]

Guide cover

Guide: how to… communicate with your pension members

Effective communication of your pension scheme is a large part of getting auto-enrolment right. Delivering the same message to all employees is not necessarily the way to go. To assist you with the communication of your pension scheme, we have provided some key areas to think about, such as:

  • What to consider when segmenting your workforce
  • How to communicate to pension scheme members at the right time in their member lifecycle
  • What topics you should be discussing with your pension members
  • The new pension freedoms and the importance of communicating them


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm