She said that although the UK economy had performed more strongly than the IMF had predicted, uncertainty over the terms of the deal "is always a risk". "Better clarity, less uncertainty is certainly better for the UK economy and for the rest of the European Union," she said. "It is only when those questions are better clarified that we will understand how the UK economy is going to pan out. DOWNSIDE RISKSBefore the referendum result, Lagarde said a vote to leave the EU would have consequences ranging from "quite bad to very, very bad". Since the referendum, the UK economy has performed strongly and the IMF has admitted that it was too pessimistic.

Source: The Star January 19, 2017 05:07 UTC