The U.K.’s planned exit from the European Union will have a “small” negative impact on the bloc’s economy, although it will prove more damaging to countries such as Ireland, the Netherlands and Belgium that have closer links with Britain, the International Monetary Fund said Thursday.
In its annual review of the eurozone’s economic policies, the Washington, D.C.-based institution also warned that failure to reduce the large trade surpluses recorded by Germany and some other members could provoke a protectionist response from...