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IMF Economist Warns Brexit Risk 'Real,' Damaging To World Economy

The International Monetary Fund has warned that Britain could cause great damage to the fragile world economy if it votes to leave the European Union in a June 23 referendum.

In an assessment published on April 12, IMF Chief Economist Maurice Obstfeld listed the so-called Brexit referendum as a key risk for the global economy that “has already created uncertainty for investors.”

Obstfeld said “a Brexit could do severe regional and global damage by disrupting established trading relationships.

Obstfeld said other major risks to the world economy are instability in China and other emerging markets, volatile share prices on stock markets around the world, and a loss of long-term growth potential in the world’s most advanced economies.

Based on reporting by Reuters and AP