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IMF Scraps Forecast for Global-Growth Pickup on Brexit Fallout

  • Fund cuts GDP projection by 0.1 point to 3.1% expansion in ’16
  • Impact will be worse if talks between U.K., EU break down
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IMF Lowers Global GDP Forecast on Brexit Concerns

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The International Monetary Fund scrapped its forecast for a pickup in global growth this year, citing Britain’s vote to leave the European Union, and warned the damage could worsen if confidence falters among investors and companies.

The IMF sees global gross domestic product rising 3.1 percent this year, down from April’s 3.2 percent projection and equal to growth in 2015, according to the fund’s quarterly World Economic Outlook, released Tuesday in Washington. The 2017 forecast was cut to 3.4 percent from 3.5 percent.