EU referendum: IMF’s Christine Lagarde warns of dangers of a ‘Brexit’

A vote to leave the EU is 'clearly part of the uncertainty we have at the moment', Lagarde said

Zlata Rodionova
Tuesday 05 April 2016 11:15
Comments
Christine Lagarde: IMF Managing Director
Christine Lagarde: IMF Managing Director

The head of the International Monetary Fund, Christine Lagarde, has put Britain voting to leave the EU in June's referendum among what she says are immediate threats to the global economy.

The Brexit is “clearly part of the uncertainty we have at the moment” Lagarde said in an interview with Bloomberg Television in Frankfurt, noting the impact it may have on London’s financial sector.

Her comments came on the same say day she has urged governments to pursue more growth-friendly policies in a speech at Frankfurt's Goethe University, Germany.

Ms Lagarde warned that the recovery from the 2007-2009 global financial crisis “remains too slow, too fragile and risks to its durability is increasing”.

She said that the global outlook has weakened further in the past six months, suggesting the IMF may be revising its growth outlook.

She prescribed specific moves, including for the United States to raise its minimum wage, for Europe to improve job training and for emerging economies to cut fuel subsidies and boost social spending.

“Let me be clear: we are on alert, not alarm. There has been a loss of growth momentum,” Lagarde said.

“However, if policymakers can confront the challenges and act together, the positive effects on global confidence - and the global economy - will be substantial,” she added.

Her remarks come less than two weeks before senior ministers, central bankers and other policymakers from the Fund's 188 member countries gather in Washington for the IMF and World Bank Spring Meetings to assess the health of the world economy.

The IMF forecast global growth of 3.4 per cent this year, increasing to 3.6 per cent in 2017.

Additional reporting by Reuters

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in