Further suspicion over Brexit will hinder growth in the UK economy, said the head of IMF.
Christine Lagarde signaled that businesses and investors will remain reluctant in the coming months, as she was discussing the agreement of an extension to Article 50.
She continued saying any extended dilemma would show a negative effect.
Ms. Lagarde [Former French Finance Minister] said:
“I expected a deal to be hit quickly”.
While speaking at the World Bank and IMF Spring Meetings in Washington, Ms. Lagarde said,
If there was a prolonged uncertainty, we can assume that the impact on confidence would continue. Whether you talk about investors or about decisions as to where to expand where to set up how to organize a supply chain, people are going to wonder, you know, what comes next and how will it get resolved.
- It would have a negative impact, no doubt about it.
- She further expressed pity for the plight of British businesses.
- Where she highlighted that even with the probability plans in place.
And they also might face disruption in the event of a no-deal Brexit. Also may have to be resigned to suffering a hit to their balance sheets and possibly market share.
Unfortunate
The IMF earlier in the week cautioned that no deal would cause the UK economy to shrivel, echoing the scenarios published by the Government and the Bank of England.
Ms. Lagarde then revealed her personal insight, the IMF managing director said the Brexit process was very, very disquieting on the one hand and very sad.
I grew up across the Channel and in the city of Le Havre. To be able to travel across Southampton, in an easy and unhampered way, was wonderful…
Addressing the journalists, Ms. Lagarde said, having my positive hat on it removes the risk of a no-deal Brexit on April 12, so at least the UK is not leaving on April 12 without a deal.
However, we believe that no-deal Brexit would have been a disastrous outcome.
As Brexit is at risk, the IMF has flagged what it termed a sensitive time for the global economy in its World Economic Outlook, with others including trade pressures between the US and China and high corporate debt levels in many countries.
But said is hoping to see a rebound in global growth later this year but admitted that was dubious.
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