Greece’s largest employers’ group, SEV, this week warned that last month’s interruption in negotiations to conclude the now delayed second review of the Greek program (third bailout) undermined the economic dynamism that meekly emerged in the second half of 2016.
The Federation of Greek Enterprises (SEV) also referred to a return of uncertainty, again due to the stalled negotiations between the leftist Greek government and its institutional creditors. It added that the delay also threatens forecasts for 2017 — most of whom exceed a very ambitious 2.5 percent of annual GDP.
SEV’s monthly economic bulletin stressed that such delay burdens macro-economic forecasts, and by extension the negotiations, acting as a self-fulfilling prophesy of economic and political certainty causing disinvestment, and vice-versa.
“This repeated pattern over time worsens the prospects of the economy’s return to growth,” the bulletin noted.
