The International Monetary Fund said Britain risks falling into a self-reinforcing cycle of weaker economic growth and lower house and share prices if voters opt to leave the European Union next month.
“A vote for exit would precipitate a protracted period of heightened uncertainty, leading to financial market volatility and a hit to output,” the IMF said in a report published on Friday.
A sudden stop in investment into key sectors of the economy such as commercial real estate and finance could exacerbate Britain’s record-high current account deficit, the IMF said.
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