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Brexit impact negative and substantial for UK: IMF

The International Monetary Fund warned Friday that if Britain votes to exit the European Union next week it could deal the economy a"negative and substantial" blow.
In the worst-case scenario, the economy would sink into recession next year and overall economic output would be 5.6 percent lower than otherwise forecast by 2019, with unemployment rising back above six percent, according to an IMF analysis.
The Washington-based global crisis lender revealed the findings of its annual British economic checkup less than a week ahead of the June 23 vote on EU membership, adding that"contagion effects" from a"Leave" vote could hit markets worldwide.
"While there is much uncertainty about the precise economic effects of an exit from the EU, they are likely negative and substantial," the IMF concluded."An exit would precipitate a protracted period of heightened uncertainty that could weigh on confidence and investment and increase financial market volatility, as negotiations on new arrangements could remain unresolved for years." (AFP)