Citi continues to point to what it calls the possibility of “political uncertainty” in Greece ahead of a second review of the Greek program (third bailout) this autumn, in repeating its prediction of increased chances of “Grexit”.
Citi continues to point to what it calls the possibility of “political uncertainty” in Greece ahead of a second review of the Greek program (third bailout) this autumn, in repeating its prediction of increased chances of “Grexit”.
The NYC-based banking and finance multinational previously predicted a massive recession of 7.2 percent in Greece for 2018 if the country leaves the Euro area – along with an inflation rate of 46.2 percent.
In its last monthly report, Citi foresees that resumed talks over whatever debt relief for Greece will rekindle political uncertainty in the country, but without any solution guaranteed. As a result, according to Citi, a risk of Grexit remains in the coming three years.
Conversely, Citi revised its prediction for Greek GDP in 2016, slightly improving its forecast to a -0.3 reduction, more in line with predictions offered by the Greek government and its European creditors. Citi’s previous forecast cited a drop of 1.2 percent for 2016, a more pessimistic figure than other institutional bodies.
Citi sold its Greek operations to domestic lender Alpha Bank in 2014.