Research Body Says New Tax Measures to Take Toll on Greek Economy

Stringent measures to secure the next installation of Greece’s 86-billion-euro bailout plan are bound to hit the Greek economy even more, the Foundation for Economic and Industrial Research (IOBE) said on Wednesday.

Despite the seemingly good performance of the tourism sector, the IOBE quarterly report warns that the new taxes to be agreed on with Greece’s creditors will impact consumption and employment in the retail and the restaurant-bar-cafe sectors.

The IOBE study further estimates that unemployment is set to reach 25.2 percent in 2016, up from 24.4 percent in the third quarter of 2015, with GDP forecast to grow by a slight 1 percent, which will however depend on the smooth negotiations with lenders and the effective distribution of the third rescue package.

IOBE chairman of BoD Takis Athanasopoulos said the overall picture “if not worse, is no different that that of 2010”.

The Athens-based body’s director-general Nikos Vettas cited lack of proper orientation in politics, adding that the longer it takes to implement reforms in the Greek economy, the longer the crisis will linger.