Don’t expect Greek upswing just because of deal, Rogoff says

A deal between Greece and its creditors is unlikely to cause an economic upswing in the country, Harvard University Professor Kenneth Rogoff said.

“Nothing sharp on Greece is going to turn on exactly what happens in the next week,” Rogoff said in an interview in Zurich late on Tuesday.

Euro-area finance ministers will meet for the third time in a week on Wednesday to try to secure an agreement to avert a default in Greece, which has seen a quarter of its gross domestic product wiped out in the last five years. With less than a week to go before the country’s bailout expires, a deal appeared within reach after Greek Prime Minister Alexis Tsipras signaled he was ready to end a bitter five-month standoff over aid.

“They seem very focused on who gets the blame for continuing recession,” Rogoff said. “That’s likely to happen on any account, that is at the core of the debate at the moment.” [Bloomberg]