Citigroup’s forecast for Greece has put the danger of a Grexit back on the table. The Global Economic Outlook and Strategy report for globalists points to a deepening recession in store for Greece with political uncertainty and chances of an exit from the Eurozone set to escalate over the next one to three years.
The U.S. bank said that the climate for Greece hasn’t marked improvement following the completion of the first review of the rescue package in June. The fiscal deficit, along with the VAT hike, are set to burden economic activity in the second half of the year. The slowing down of the tourist flow in comparison to recent years and uncertainty spearheaded by the Brexit creates a bleak future for Greece according to the pessimistic report.
Citigroup believes that recession will continue with a 7.1 percent contraction of the GDP in 2018 and inflation increases worth 47 percent.