The U.K's vote to leave the European Union (EU) has pushed the International Monetary Fund (IMF) to cut its world growth forecast for this year and next.
In its World Economic Outlook, published on Tuesday, the IMF forecast global growth at 3.1 percent in 2016 — 0.1 percentage points down on its April forecast, 0.3 percentage points lower than its January estimate, 0.5 percentage points below its estimate from October 2015 and 0.6 percentage points down on its forecast from July 2015.
The IMF also cut its forecast for 2017 growth to 3.4 percent — having predicted expansion of 3.5 percent back in April and 3.6 percent in January.
Just one day before the Brexit vote, the IMF was planning to raise the growth outlook, it said in the opening statement of its latest quarterly World Economic Outlook report.
"The first half of 2016 revealed some promising signs — for example, stronger-than-expected growth in the euro area and Japan, as well as a partial recovery in commodity prices that helped several emerging and developing economies," Maury Obstfeld, director of research at the IMF, said on Tuesday.
"As of June 22 (the day before the U.K.'s Brexit vote), we were therefore prepared to upgrade our 2016-17 global growth projections slightly. But Brexit has thrown a spanner in the works," he added.