China's policymakers and leading economists on Sunday voiced concerns about Britain’s vote to leave the European Union (EU), with the Finance Minister saying it has heightened market uncertainty, though some expect a limited impact on the Chinese economy.
The “Brexit” decision “will cast a shadow over the global economy ... The repercussions and fallout will emerge in the next five to 10 years,” said Lou Jiwei, China’s Minister of Finance, at the first annual meeting of the Asian Infrastructure Investment Bank in Beijing. “It’s difficult to predict now,” he said.
“The knee-jerk reaction from the market is probably a bit excessive and needs to calm down and take an objective view.” Mr. Lou’s views were echoed by the head of China's top economic planning authority and other economists at the World Economic Forum in the northern city of Tianjin.
Also speaking at WEF was economist Nouriel Roubini, famed for predicting the global financial crisis, who said the decision to leave the EU “creates a whole bunch of financial, economic, political and geopolitical uncertainties.”
It could be the “beginning of the disintegration” of the bloc of countries, the eurozone or the U.K., said Mr. Roubini. “I don’t expect a global recession or another global financial crisis,” he added. “I think the impact of Brexit is significant but not of the same size and magnitude of the one we had 2007 to 2009.” — Reuters
