Global banker Citigroup published its monthly report on global prospects in which it notes that political uncertainty has returned to Greece. The report puts the possibility of a back on the table.
The recession in Greece is expected to continue this year and over the next two years with an explosion of the recession to 7.2 percent. The financial institution points out that the GDP data for the second quarter of 2016 was better than expected mainly due to the positive contribution of exports.
Doubt is cast over the sustainability of public debt. As a result, Grexit dangers will increase over the next 1 to 3 years. The same forecast regarding a Greek exit from the Eurozone had been expressed in the previous month’s report. The new measures of fiscal austerity are expected to further hamper economic activity in the second quarter.
The recession is expected to climax in 2018, a year that will see inflation explode to 46.2 percent and recession at 7.2 percent. The same report predicts that Greece will not manage to enter the markets in 2017 as the Greek government hopes as Greek 10-year bonds will be at 8.25 percent, 7.84 percent in 2017 and 8.14 percent in 2018.