IOBE General Director Nikos Vettas.
Against the backdrop of an already difficult geopolitical landscape, a possible failure to form a single-party government in the next election is emerging as an additional risk for the prospects of the Greek economy.
“Potential political instability is the greatest risk in the coming period,” emphasized Foundation for Economic and Industrial Research (IOBE) president Giannis Retsos during the presentation of its quarterly report.
As the report states, if the necessary political consensus is not achieved, the likelihood of a slowdown in the reform program increases, with an impact on productivity, competitiveness and, by extension, on medium-term growth prospects and the investment climate.
The tense geopolitical landscape creates additional risks, although so far it has caused a limited blow. According to IOBE, more inflationary pressures and further tension in the Middle East can weaken the Greek economy.
