The UK's decision to leave the EU will exert a drag on eurozone growth for the next three years, according to the International Monetary Fund.

The IMF said the 19-member bloc of countries that use the euro was at a "critical juncture", and warned that "muddling through" the single currency's problems had become "increasingly untenable".

While the Brexit vote in itself was unlikely to send massive shockwaves through the eurozone, the IMF said risks to the economic outlook remained "firmly on the downside".

The Fund revised down its growth projections for the region to 1.6pc this year, 1.4pc in 2017 and 1.6pc in 2018.

Its previous update, predicated on a remain vote, showed growth of 1.7pc per year over the next three years.