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Monday, 23 May 2016

Brexit will hurt the world's poorest people warns chief of the World Bank

Brexit will hit the poorest people in the world because Britain's economy is so influential, the head of the World Bank has warned.

Dr Jim Yong Kim today said shockwaves of leaving the EU could become one of the biggest risks facing the global economy.
And he warned that instability could have "very negative effects... on the countries we serve."
The World Bank chief spoke out as new Treasury analysis claimed Brexit could cost up to 820,000 British jobs and plunge the nation into a year-long recession.
The Treasury report modelled two types of shock in the two years ahead if Britain votes to leave the EU on June 23.
The key figures from the EU 'shock doc' unveiled by the Treasury today
The first, a 'shock' would knock 3.6% off GDP costing 520,000 jobs - while a 'severe shock' would cut 6% off GDP and cost 820,000 jobs.
Speaking at B&Q's HQ in Eastleigh, Hampshire, Chancellor George Osbornedescribed the report as a “detailed and rigorous analysis”.
PM David Cameron added: "This could be, for the first time in history, a recession brought on ourselves. As I stand here in B&Q, it would be a DIY recession."
Leave campaigners including Boris Johnson dismissed the research as "propaganda" that was unreliable.
But the World Bank chief today joined anti- Brexit warnings by bodies like the IMF - and said the shocks would extend far beyond the English Channel.
PA
Boris Johnson dismissed the Treasury research as "nonsense"
He told BBC Radio 4's The World At One: "The issue of the Brexit is up to the voters of the UK. But we have been watching very carefully, and we are very concerned about the potential impact of an exit vote on developing countries.
"We think that any kind of instability in an economic situation that is already pretty gloomy, you know we have been downgrading our expectations of economic growth pretty consistently over time, and while there are some bright spots, there is no question that for us, the threat of Brexit is one of the biggest risks that we face.
"There are huge problems in developing countries and we are very worried that they will get much worse if there is a Brexit .
"The stability of the British economy is really important for the stability of the global economy, and also that... uncertainty in global capital markets has very negative effects, even on the poorest countries.
"We are watching very carefully the potential impact of many different economic events on low and medium income countries, and we fell that this could have a negative impact on the countries that we serve," the World Bank president told BBC Radio Four's The World At One."

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