Moody’s: real danger of Brexit is political contagion

The vote on Brexit will curb the British economic growth because of its effects on confidence even if the increased risk resulting outcome of the referendum is a political contagion among the EU countries.

It is the opinion of Moody's, which reduced its estimates for growth in the UK to 1.5% for 2016 and 1.2% for 2017, from the previous forecast of 1.8% and 2.1%.

The rating agency also lowered the forecast on growth in the euro area to 1.5% for the current year and 1.3% next from 1.7% to 1.6% to take account of developments specific to the country level together with a limited spillover effect resulting from Brexit.