Brexit heightens global economic risks, says G20


24th July, 2016 02:55:11 printer

Brexit heightens global economic risks, says G20


The UK's vote to leave the European Union heightens risks for the world economy, finance chiefs have said at the end of the G20 summit in China.



The outcome of last month's referendum "adds to the uncertainty" for the global economy, the group of the world's 20 largest economies said.



"In the future, we hope to see the UK as a close partner of the EU," it said.



Chancellor of the Exchequer Philip Hammond revealed the subject had come up "a great deal" at the two-day talks.



"The reality is there will be a measure of uncertainty continuing right up to the conclusion of our negotiations with the EU," he told reporters.



Following the meeting in the Chinese city of Chengdu, the G20 group said it was well placed to actively cope with the potential economic and financial impact from the Brexit vote.



Other factors complicating the world economy include geopolitical conflicts, terrorism and refugee flows, according to the G20.




The president of Germany's central bank, Jens Weidmann, said there were no signs yet that economic development in Europe had been affected by the UK's referendum result.



The G20 agreed that despite the Brexit vote the global economy would improve in 2016 and 2017, Mr Weidmann said.



Separately, G20 policymakers said they recognised that excess steel supply was a global issue.



The excess capacity of steel has had a negative impact on trade and workers and requires a collective response, they said.