ECONOMY

IOBE: No agreement would be a huge failure

Greece’s Foundation for Economic and Industrial Research (IOBE) on Tuesday revised this year’s growth estimate from 3 to 1 percent, while its head, Nikos Vettas, described the possible lack of agreement between the government and its creditors as “an extraordinarily big failure.”

At the presentation of IOBE’s quarterly review of the Greek economy, Vettas said the country’s problems are down to the lack of a genuine dialogue in society and went on to say that if there is no positive outcome to the talks it will mean that all sides have failed, especially now that most of Greece’s fiscal adjustment has already been implemented.

He also said that the government is already in talks with its creditors regarding a third bailout program, which will come with a new loan given that Greece is now unable to tap the financial markets.

The report said it is now impossible for the economy to grow 3 percent as previously forecast, adding that conditions that could see the economy grow by 1 percent or even more over the course of this year do exist.