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UPDATE 2-Brexit would be serious risk to global economic growth -G7 leaders

Published 2016-05-27, 04:10 a/m
© Reuters.  UPDATE 2-Brexit would be serious risk to global economic growth -G7 leaders

(Adds Cameron quotes)
By Kylie MacLellan
ISE-SHIMA, Japan, May 27 (Reuters) - A British exit from the
European Union would be a serious risk to global economic
growth, Group of Seven leaders said in a summit declaration on
Friday, as Prime Minister David Cameron urged voters to "listen
to our friends" on the impact of Brexit.
Brexit was not formally on the agenda at the two-day summit
in Japan and despite both German Chancellor Angela Merkel and
French President Francois Hollande saying the issue had not been
discussed, Cameron said "one or two people" had raised it.
"A UK exit from the EU would reverse the trend towards
greater global trade and investment, and the jobs they create,
and is a further serious risk to growth," G7 leaders said, in
the only reference to the vote in a 32-page declaration.
Brexit was listed alongside geopolitical conflicts,
terrorism and refugee flows as a potential shock of a
"non-economic origin".
The G7 statement follows comments from the International
Monetary Fund that there were no economic positives to Britain
leaving the EU, while the Bank of England has said the economy
would slow sharply, and possibly even enter a brief recession.
The Organisation for Economic Co-operation and Development
has also warned that British voters risk paying a "Brexit tax"
equivalent to a month's salary by 2020 if they leave the EU.
Last week, G7 finance leaders united in wishing Britain
stayed in the EU at a June 23 referendum, but acknowledged they
could do little more than hope.
"We should listen to our friends, we should listen to people
who want us to do well, who wish well of us in the world. When
you are faced by a difficult decision, it is often a good thing
to listen to what your friends think," Cameron told reporters at
a news conference after the summit.
Merkel said although leaders had not discussed the issue,
there was a consensus that they wanted the country to stay in,
while Hollande said Brexit would be bad news.
"It is not for us to say what the British people should be
doing," he told reporters.
"Economically, it would be bad news, bad news for the United
Kingdom, as well as the world, not just Europe. That would
trigger capital transfers as well as the relocation of some
activities that would not be for the benefit if the United
Kingdom or even for Europe."
Opinion polls have given conflicting steers on which way the
vote might go, with telephone polls suggesting "In" is
comfortably ahead while online polls suggest a tight race that
"Out" could win. Betting odds heavily favour an "In" vote.
Cameron said Britain could "find our way whatever the
British people choose", but warned leaving the bloc would hurt
the country's economic future and complicate trade deals with
countries such as Japan.
He also rejected a description by a former aide this week
that he secretly supported a vote for Brexit.
"I have never been a closet Brexiteer," he said. "I am
absolutely passionate about getting the right result, getting
this reform in Europe and remaining part of it. It's in
Britain's interests and that's what it is all about."

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