As you probably know, the decision made by the British people to quit the European Union, which is now known as the Brexit, added uncertainty to the global economy as international financial markets went more volatile.
Still, G20 leaders still hope that the United Kingdom is going to retain close economic and political ties with the European Union. In the meantime, more and more representatives of the international expert community, including the UK’s financial authorities, assume that this uncertainty is likely to be seen as long as the Brexit procedure is still underway. This means that the existing volatility seen in the global economy and financial markets will disappear only when the Brexit is completed.
Still, the experts are perfectly aware of the fact that the Brexit is not the only factor driving the volatility and uncertainty. Apart from it, there are many geopolitical issues, including the existing conflicts in the Middle East as well as terrorism and migration problems in Western Europe.
Still, after the finance ministers of G20 nations held a summit in China, they concluded that the world’s biggest economies around the globe are still capable to withstand the existing and forthcoming economic and financial challenges. In particular, the finance minister of Germany is convinced that so far there has been no major evidence that the economy of the Eurozone and the European Union has suffered somehow from the UK’s decision to leave the EU for good.
In the meantime, Masterforex-V academy experts report that the IMF downgraded the 2016 and 2017 global economic forecast after the Brexit. In 2016, the global economy is expected to gain 3,1% instead of 3,2%. In 2017, the global economy is expected to gain 3,4% instead of 3,5%. For now, the downgrade was inconsiderable since the process of evaluating the Brexit risks is rather complicated. This means that the IMF may revise the forecast once again and downgrade it even more. It should also be noted that the IMF revised its forecast for the British economy at the same time, as well. In 2016, the British economy is expected to gain 1,7% instead of 1,9%. In 2017, the British economy is expected to gain 1,3% instead of 2,2%. They say that the aftershock of the Brexit is going to be seen even in the USA and China.
