IMF World Economic Outlook (WEO) Update, July 2016:Uncertainty in the Aftermath of the U.K. Referendum

The outcome of the U.K. vote, which surprised global financial markets, implies the materialization of an important downside risk for the world economy. As a result, the global outlook for 2016-17 has worsened, despite the better-than-expected performance in early 2016. This deterioration reflects the expected macroeconomic consequences of a sizable increase in uncertainty, including on the political front. This uncertainty is projected to take a toll on confidence and investment, including through its repercussions on financial conditions and market sentiment more generally. This WEO Update briefly elaborates on these themes and their implications for policymakers. A more thorough assessment of the global outlook will be presented in the October 2016 WEO.