IMF Chief Warns Britain As Brexit Approaches

London, The head of the International Monetary Fund, Christine Lagarde, has warned the United Kingdom of obstacles prior to its departure from the European Union.

Speaking to the BBC, Lagarde said the Brexit process would be complicated, adding that although the U.K. economy had performed more strongly than the IMF had predicted, uncertainty over the terms of the deal “is always a risk.” Any deal with the EU will “not be as good” as membership, she said.

She welcomed the speech of the British Prime Minister, Theresa May, saying that “better clarity, less uncertainty is certainly better for the U.K. economy and for the rest of the European Union,” but warned that there were still many questions to be answered.

However, she questioned the nature of the Brexit transition saying that “it is only when those questions are better clarified that we will understand how the UK economy is going to pan out. We are still of the view that it will not be positive all along and without pain.” Before the referendum result, Lagarde said a vote to leave the EU would have consequences ranging from “quite bad to very, very bad.” She said that the Bank of England’s decision to cut interest rates after the referendum had supported the economy and that consumers had remained far more confident than expected, but added that there were still downside risks ahead.

Source: Qatar News Agency