WASHINGTON (TIP): Britain’s decision to leave the European Union (EU) will trim economic growth this year and next across the 19 countries that share the euro currency, the International Monetary Fund (IMF) says.

The global lending agency expects the eurozone economy to grow 1.6 per cent this year and 1.4 per cent in 2017. Before the so-called Brexit vote, the IMF was projecting 1.7 per cent growth this year and next. The eurozone grew 1.7 per cent last year, fastest since 2010.

The downgrade reflects rising uncertainty, volatility in financial markets and falling exports to Britain following the vote. The surprising June 23 decision means the United Kingdom must renegotiate its trade and immigration arrangements with the EU. Many businesses are likely to delay investments in Britain and Europe until they know what the new rules will be.