22 Jul 2015
Greek economy is set to contract by at least 2.4% y/y in 2015 - Citi
FXStreet (Mumbai) - Citi paints a bleak picture for the future of Greece in its latest economic projections, highlighting recession, hyperinflation, staggering unemployment, stratospheric debt and social tensions as the key factors underscoring the Greek economic growth.
In its latest economic projections for Greece released, the investment bank estimated that Greece's HICP (harmonized index of consumer prices) will hit an astonishing 22.5% in 2017.
Other forecasts are dark, too. The nation's government debt to GDP ratio will climb further to the
stratosphere, if the country doesn't get a substantial hair cut, Citi warned, offering its predictions: 192% until year-end, 211.9% next year, 235.8% in 2017 and 238% in 2018.
The economy, meanwhile, is set to contract by at least 2.4% year-on-year this year, considerably more than a 0.2% fall projected in June. The recession is likely to continue slapping the nation at least until the first quarter iof 2016, the bank noted.
"Failure by the Greek authorities to lift capital controls in a meaningful way and a further increase in unemployment (we forecast that the jobless rate will rise from 27% in 2015 to 29% in 2016) could also increase social tensions, in our view," the bank said in the report.
In its latest economic projections for Greece released, the investment bank estimated that Greece's HICP (harmonized index of consumer prices) will hit an astonishing 22.5% in 2017.
Other forecasts are dark, too. The nation's government debt to GDP ratio will climb further to the
stratosphere, if the country doesn't get a substantial hair cut, Citi warned, offering its predictions: 192% until year-end, 211.9% next year, 235.8% in 2017 and 238% in 2018.
The economy, meanwhile, is set to contract by at least 2.4% year-on-year this year, considerably more than a 0.2% fall projected in June. The recession is likely to continue slapping the nation at least until the first quarter iof 2016, the bank noted.
"Failure by the Greek authorities to lift capital controls in a meaningful way and a further increase in unemployment (we forecast that the jobless rate will rise from 27% in 2015 to 29% in 2016) could also increase social tensions, in our view," the bank said in the report.