The International Monetary Fund (IMF) is slashing its projections for economic growth in the UK next year, and warning that the decision to leaves the European Union will throw "a spanner in the works" of the overall global recovery.

"The first half of 2016 revealed some promising signs - stronger than expected growth in the Euro area and Japan, as well as a partial recovery in commodity prices that helped several emerging and developing economies," said the IMF's economic counsellor Maury Obstfeld, who added that the Brexit vote forced the institution to trim its outlook.

The IMF is now predicting global growth of 3.1 percent in 2016 and 3.4 percent in 2017, both of which were 0.1 points lower than forecast just three months ago.  The body's World Economic Outlook (WEO) says, "The vote in the UK in favour of leaving the EU adds significant uncertainty to an already fragile global recovery.  The vote has caused significant political change in the UK, generated uncertainty about the nature of its future economic relations with the EU, and could heighten political risks in the union itself.  Continuing uncertainty is likely to weigh on consumption and especially investment."

Later on Wednesday, British Prime Minister Theresa May will meet with German Chancellor Angela Merkel in Berlin to discuss ways to minimize the economic fallout from the Brexit.  Ms. May will say that she needs more time to work with the governments of Scotland, Wales, and Northern Ireland before triggering the EU's Article 50 and starting formal exit negotiations with Brussels.  She'll go to France on Thursday to make the same case to French President Francois Hollande.