Washington– The International Monetary Fund (IMF) on Tuesday revised down its forecast for global growth in 2016 and 2017 in view of the uncertainty surrounding Britain’s exit from the European Union.

The IMF expects the global economy to grow 3.1 per cent in 2016 and 3.4 per cent in 2017, both 0.1 per cent lower than its forecasts in April, Xinhua news agency reported.

“The outcome of the UK vote, which surprised global financial markets, implies the materialisation of an important downside risk for the world economy. As a result, the global outlook for 2016-2017 has worsened, despite the better-than-expected performance in early 2016,” the IMF said.

The uncertainty surrounding the Brexit is projected to take a toll on confidence and investment, including through its repercussions on financial conditions and market sentiment more generally, it added.