IMF’s Lagarde wants uncertainty around Brexit to be addressed

International Monetary Fund Managing Director Christine Lagarde said in Beijing on Friday that the uncertainty surrounding the terms of Brexit must be dissipated immediately to avoid a negative impact on the global economy.

Lagarde stressed the importance of addressing the situation quickly and exploring ways in which the United Kingdom could continue participating in the world economy at a press conference in Beijing on the occasion of the 1+6 Roundtable, that includes China, the International Monetary Fund, the World Bank, the International Labour Organization, Organisation for Economic Cooperation and Development and the Financial Stability Board.

The IMF managing director recalled that as announced by the international organization on July 19, Brexit, or Britain’s decision to leave the European Union, will cost the world 0.1 percentage points of its economic growth.

Meanwhile, the IMF maintained its forecast in April for China in 2017 at 6.2 percent.

Lagarde applauded the robust and stable growth achieved by China owing to the reforms undertaken by the government.

Chinese Prime Minister Li Keqiang, underlined China’s commitment to promoting multilateralism and global trade while acknowledging the existence of fluctuations as a result of Brexit.

Li said China will take a holistic approach to handle the multiple challenges facing its economy but stressed the upward trend of the country’s growth and the room to maneuver the implementation of fiscal policies.

Li also asserted that China is not involved in a trade or exchange war and will not only fight against all forms of protectionism but will also work towards managing its excess industrial capacity.