The International Monetary Fund cuts its global growth forecasts for the next two years, citing uncertainty over Britain's looming exit from the European Union. Grace Pascoe reports.
(SOUNDBITE) (English) IMF, ECONOMIC COUNSELLOR AND DIRECTOR OF RESEARCH, MAURY OBSTFELD, SAYING: "Brexit has thrown a spanner in the works. The new WEO update gives our revised numbers compared to April when we were predicting 3.2 percent global growth of output in 2016 and 3.5 percent in 2017. Today's WEO downgrades both of those numbers by 0.2 percentage point to 3.1 and 3.4 percent respectively." It's the International Monetary Fund's fifth cut in 15 months. And Brexit has won a decisive victory in the blame game. The uncertainty taking its toll on investment, as well as market and consumer confidence - even if the full hit is yet to be seen. (SOUNDBITE) (English) CMC MARKETS, MARKET ANALYST, JASPER LAWLER, SAYING: "There is some evidence that the drop in sterling is cushioning the UK economy from the Brexit vote. And as long as the UK economy can keep performing well then the rest of the world shouldn't be affected by it. Time will tell how the European Union itself fares but really the economic impact is going to a long time coming for the European Union I think." Aside from Brexit, the IMF cite the refugee crisis, geopolitical risks and crisis legacies amongst global growth risks. As well as China's transition to a service oriented economy.