The quarterly economic forecast for the Eurozone published by Ernst & Young suggests that the economic outlook for Greece remains highly uncertain, with a 0.1% GDP negative growth rate expected in 2015.
According to the EY report, in spite of the Greek government agreeing to an extension of the existing program in February, it failed to agree a reform agenda with its international creditors that was required in order to secure the release of much-needed financing.
As such, the financial progress that was achieved in 2014 (0.7% GDP growth rate) after six consecutive years of a recession, appears to be have been lost.
Should Greece avoid defaulting to the International Monetary Fund and European Central Bank, while simultaneously securing fresh funding, then a 1.8% growth rate in 2016 is possible.
The full EY forecast is available online.
