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Chinese Premier, IMF Chief warn against Brexit uncertainty
July 22, 2016, 9:08 am

Chinese Premier Li Keqiang (4th from left) with IMF chief Christine Lagarde at the 1 + 6 roundtable on promoting global growth at the Diaoyutai Guest House in Beijing on 22 July 2016 [Image: IMF]

Chinese Premier Li Keqiang (4th from left) with IMF chief Christine Lagarde at the 1 + 6 roundtable on promoting global growth at the Diaoyutai State Guesthouse in Beijing on 22 July 2016 [Image: IMF]

In Beijing on Friday, IMF chief Christine Lagarde called on Europe to quickly resolve questions over Britain’s exit from the European Union.

“Our first and immediate recommendation is for this uncertainty surrounding the terms of Brexit be removed as quickly as possible so that we know the terms of trade and the ways in which the United Kingdom will continue to operate in the global economy and vis a vis its partners,” Lagarde said.

Chinese Premier LI Keqiang also echoed Lagarde in raising concerns over the impact of Brexit and has urged leaders to step up macroeconomic policy coordination.

“Given the financial fluctuations as a result of Brexit, China will advance the market-based reform of the exchange rate,” Li said on Friday.

Li urged countries around the world to implement “proactive” fiscal policies.

“China is still a developing country — we can’t shoulder the heaviest burden of the world’s economy,” Li told a press conference after a round-table discussion on economic growth, trade and finance with heads of institutions including the WTO, ILO, OECD and IMF.

The meeting came ahead of a meeting of G20 finance ministers and central bank governors in China this weekend.

China will host the G20 summit this year in Hangzhou September 4-5.

World Trade Organization Director General Roberto Azevedo warned trade growth is at a 30-year low.

The IMF cut its global growth forecasts for the next two years earlier this week.

 

TBP and Agencies