The International Monetary Fund (IMF) foresees challenging times ahead for Greece. In the World Economic Outlook Update released on Thursday, the Fund holds optimistic expectations for the Eurozone, but not for Greece. “The economic recovery in the euro area seems broadly on track, with a generally robust recovery in domestic demand and inflation beginning to increase. Growth projections have been revised upward for many euro area economies, but in Greece, unfolding developments are likely to take a much heavier toll on activity relative to earlier expectations,” the report said. The report also noted that the effects of the Greek crisis have generally been contained while it stressed the negative aftermath of events of the past two weeks in Greece. “More recently, the bank holiday in Greece and subsequent referendum, along with increased uncertainty about the prospects and nature of any future support from the international community, have led to sharply higher spreads on Greek sovereign bonds, especially at short maturities,” it stated. The report projected a 3.3% global growth rate in 2015 and 3.8% in 2016.
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