London Daily

Focus on the big picture.
Friday, Aug 01, 2025

IMF boss warns of 'painful' Brexit

IMF boss warns of 'painful' Brexit

Brexit will add to world economic woes, IMF managing director Kristalina Georgieva says.

he new head of the International Monetary Fund has warned that Brexit in whatever form will be "painful", adding to the effects of a global slowdown.

Kristalina Georgieva said the split will hurt not only the UK and European Union, but also low income countries with economic ties to them.

IMF data show that growth has already slowed in almost 90% of the world.

"It is very obvious that this [Brexit] is going to be painful," she told the BBC.

Ms Georgieva said UK politicians will have to figure out how to shield people hurt by Brexit - but the options available to fund those measures are limited.

"The choices are not that many - you either borrow or you look at the [tax] increase," she said.

Brexit: Deal essentially impossible, No 10 source says after PM-Merkel call

IMF boss Kristalina Georgieva warns of 'painful' Brexit

Tony Blair: 'No-deal Brexit risks UK break-up'

Ms Georgieva, who spoke to the BBC ahead of the IMF's annual meeting in Washington next week, said the IMF is also concerned about the effect of Brexit outside of the UK.

"I particularly worry about low-income countries that are in a significant way dependent on the European Union and the UK," she said.

"Unfortunately this is not great news," she said of Brexit. "And it comes at a time of compounded other factors that slow down growth."


Trade war


The US and China are locked in a trade war over state subsidies and technology theft that has led the two sides to impose tariffs on billions of dollars worth of each other's goods.

US President Donald Trump has also picked fights with allies such as Europe and Canada over cars, steel and aluminium.

The disputes have brought trade growth to a "near standstill" and hurt manufacturing and business investment, Ms Georgieva said.

In 2020, the IMF predicts that they will knock almost 1% off of global growth in 2020 - or roughly $700bn.

"What is most significant is that it is not the direct impacts of tariffs that are most harmful. Most harmful is the loss of confidence," Ms Georgieva said.

'Bigger loser'
The White House has said the tariffs are meant to force China to change its policies and dismissed concerns about growth, arguing that any harm to the US pales in comparison to the damage on China.

"That is not a good excuse if you can say, you know what, I'm a loser, but you're a bigger loser than me," Ms Georgieva said.

"I don't think that this is what people expect from leadership."

Newsletter

Related Articles

0:00
0:00
Close
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
×