CLEAN : IMF warns Brexit would hit UK economy spark volatility 3

The transcript discusses the IMF's Article 4 assessment of the UK economy, highlighting the reasons for postponing the report's publication. It addresses significant downside risks, both domestic and international, with a focus on the economic consequences of Brexit. The uncertainty surrounding Brexit negotiations could lead to a prolonged period of economic instability, affecting investment, growth, and potentially causing a technical recession. The discussion also covers the current account deficit and its implications for the economy.

What is the primary purpose of the IMF's annual Article 4 assessment?

• To regulate international trade agreements

• To provide financial aid to developing countries

• To assess environmental policies

• To evaluate the economic prospects of a country

Why is the flexibility of the fiscal framework important according to the IMF report?

• To increase government spending

• To support economic growth

• To reduce taxes

• To enhance international trade

What is a major concern regarding Brexit as discussed in the second section?

• Increased immigration

• Improved trade relations

• Prolonged period of uncertainty

• Higher education costs

What could be a consequence of prolonged Brexit uncertainty?

• Increased foreign investment

• Depreciation of the sterling

• Higher employment rates

• Stable economic growth

What combination of factors could lead to a technical recession?

• Current account deficit and uncertainty from a no vote

• High inflation and low unemployment

• Strong currency and high exports

• Increased government spending and low interest rates