How much should the rest of the world fear ‘Brexit’?

The G20 was probably right to include UK exit from the European Union on its list of potential risks to the global recovery, especially given the precedent of the euro-zone crisis in 2011-12. However, the negative impacts of ‘Brexit’ are likely to be smaller than many fear, including the short-term costs to the UK itself. More speculatively, there may even be some positives for the world economy – notably the additional pressure for more growth-friendly policies in the remainder of the EU.