Barack Obama warns against Brexit hysteria but predicts pause in EU integration

US president Barrack Obama has made his most candid comments on the UK's referendum vote to leave the EU, warning against hysteria by adding there would now likely be a pause in the European project.

"There's been a little bit of hysteria post-Brexit vote, as if somehow NATO's gone, the trans-Atlantic alliance is dissolving, and every country is rushing off to its own corner. That's not what's happening,"Obama told the US' National Public Radio.

The outgoing president told the broadcaster he respected the democratic will of the British people, even if he had come out against it. He added the result of the 23 June referendum showed EU integration had moved too fast "without as much consensus as it should have."

"The best way to think about this is, a pause button has been pressed on the project of full European integration ... this will be a moment when all of Europe says, 'Let's take a breath and let's figure out how do we maintain some of our national identities, how do we preserve the benefits of integration and how do we deal with some of the frustrations that our own voters are feeling'."

Obama also tried to allay fears within the global economy over Brexit. He said the American economy was able to over come the "headwinds" following the shock vote.

Reuters reported $3trn (£225bn, €271.5bn) had been wiped off shares worldwide following the vote. Trading has remained volatile even as policymakers vowed to protect their economies.