Brexit Highlights Growth Obstacles in the Eurozone

Brexit
Representatives Discuss Brexit’s Economic Effect on July 21. Atlantic Council. 

The United Kingdom’s vote to leave the European Union will have a negative impact on the European economy due to its resulting uncertainty and decreased business confidence for the foreseeable future, according to the International Monetary Fund’s recently updated World Economic Outlook. Beyond uncertainty, experts contend that the outcome of the June 23 vote on a so-called Brexit highlights structural issues within the Eurozone that have prevented significant growth following the 2008 financial crisis.

“There’s no doubt about the fact that this is a negative shock to growth,” Paul Sheard, executive vice president and chief economist at S&P Global, said of the British referendum. “In many ways, it’s worse for the Eurozone than it is for the United Kingdom,” he added.

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