Skip to main content

Posts

Showing posts from June 30, 2015

Grexit could lead to export boom – or depression

 By Caroline Scott­Thomas,
 30­Jun­2015





 Related topics: Policy 




A Greek exit from the euro could lead to a strong export boom – or it could lead to a depression and hurt eurozone growth, thus wiping out export demand, according to Euromonitor economist Daniel Solomon.



 Solomon said that various financial institutions put the probability of Greece leaving the eurozone – known as Grexit – anywhere from 1 in 3 to 85%. “My current best estimate is still that a Grexit won’t happen given that it’s not really desired by most Greek voters and the ECB is likely to maintain its funding of Greek banks to minimise the risk of financial contagion to other eurozone countries,”he told FoodNavigator. 



However, he added that it was hard to predict the chaos of the Greek financial system, the attitude of key politicians, including Angela Merkel, and the actions of Tsipras. 



Prime Minister Alexis Tsipras has announced a snap referendum on whether Greece should accept its creditors’ most recent proposal, afte…