Scott Morrison is taking a much more relaxed view about the planned Brexit to this weekend's G20 finance ministers' meeting than the International Mone-tary Fund, which describes it as a blow to an already fragile global economy. 
Britain's vote to leave the EU is expected to dominate the agenda for the meeting in the southwest Chinese city of Chendu. Both the Treasurer and the IMF have released reports detailing its -impact.
Mr Morrison said the Council of Financial Regulators had found Australia's most important international exposure was to Asia rather than to Britain and Europe. "The short-run negative effect on economic activity in Australia through channels such as reduced trade, lower commodity prices and financial leakages is expected to be very limited," he said.
The report, commissioned by Mr Morrison and Malcolm Turnbull, also said "the effect on global activity is expected to be small". The council, which comprises the Reserve Bank, Treasury, the Australian Prudential Regulation Authority and the Australian Sec-urities and Investments Commission, said the longer-term effect would depend on how orderly the exit negotiations were.
There were remote risks the Brexit could lead eurozone --nat-ions to leave, causing greater disruption. "Ongoing banking sector fragility also remains a -potential for political discord and financial instability," the report said, but was confident the Australian -financial system could manage such risks.
However, the IMF's report to the G20 describes the British referendum result as "the materialisation of an important downside risk to global growth" and warns of "severe macroeconomic repercussions". It says the global economy was "weak and fragile" before the referendum and worse now.
The report goes beyond the IMF's global economic update released this week and includes a fresh forecast for Australia's economy. It has upgraded its estimate for Australia's growth this year from 2.5 per cent to 2.8 per cent after the strong GDP performance when the economy recorded 1.1 per cent growth in the   March quarter. However, its estimate for 2017 growth reduces from 3 per cent to 2.8 per cent.
The IMF is gloomy about the global outlook, saying a vicious cycle is taking hold, with expectations of continuing low growth leading to weak business investment, prolonging the stagnation.
High debt levels in some countries and the loss of skills among the long-term unemployed further dampen prospects for growth.
The fund says it is vital G20 fin-ance ministers make a more serious commitment to economic reform and urges Australia to lift spending on infrastructure and push competition reform.
Mr Morrison is travelling to the G20 meeting with Reserve Bank deputy governor Philip Lowe, who replaces Glenn Stevens in   September. Mr Morrison has planned meetings with Britain's new chancellor Philip Hammond, Japan's finance minister Taro Aso and South Korea's Choi Kyung-hwan.
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