IMF cutting EZ forecasts - UOB

Analysts at UOB Group noted that the IMF cut their Eurozone economic forecasts last Friday (8 Jul). 

Key Quotes:

"IMF cut 2016 GDP to 1.6% from 1.7% while the 2017 GDP growth is reduced to 1.4% from 1.7%. IMF noted that political uncertainty is rising with Brexit outcome and most Eurozone nations cannot afford fiscal stimulus. 

IMF also warned that Brexit impact will be worse if risk aversion in financial markets continues for a long period. 

On the banking sector, IMF warned that the Eurozone banks need to start writing off non-performing loans more rapidly. 

The risks to growth include further Brexit spillovers, refugee surge, heightened security concerns and banking weaknesses, in IMF’s view. 

The medium-term growth prospect for the Eurozone was labeled as “mediocre”"