Mubasher: The International Monetary Fund (IMF) lowered its economic growth forecasts for the eurozone in the wake of the Brexit vote.
The eurozone is expected to grow 1.6% in 2016 and 1.4% next year, the IMF said in its annual policy review of the 19-country bloc.
"Externally, a further global slowdown could spill over and derail the domestic demand-led recovery. Domestically, the risks are largely political," according to the IMF.
"Further spillovers from the U.K. post-referendum situation, the refugee surge, or a heightening of security concerns could contribute to greater uncertainty, hurting growth and hindering progress on policies and reforms," the annual report highlighted.
“if the separation negotiations drag out between the EU and the UK and continues to cause risk reductions in financial markets, euro area growth would slow further," Reuters quoted the IMF European department deputy director Mahmood Pradhan as saying.
