Left to right, Giorgios Zanias, chairman of the Council of Economic Advisors to the Greek Finance Ministry, Evangelos Venizelos, Greece's finance minister, Pantelis Economou, Greece's deputy finance minister, Ilias Plaskovitis, general-secretary of Greece's Finance Ministry.
THERE is a 65% chance that Greece will exit the eurozone next year, Nariman Behravesh, IHS chief economist says.
Speaking at the release of the companys global economic outlook report on Tuesday, Mr Behravesh said a Greek exit would cause the euro to depreciate significantly against the dollar.
A Greek exit is inevitable. We think the Greece situation is completely unsustainable. Greek output will drop, and youth unemployment is at 50%. They cant go on like this, he said.
Mr Behravesh did not see a contagion, and expected other countries to remain in the eurozone.
The dollar would, in the short-term, be firmer against other major currencies driven by lower growth expectations for China and sovereign debt challenges in Europe.
These factors, he added, would drive investors into the dollar and dollar assets.
The bigger concern is about Europe, and that has strengthened the dollar in the short term, he said.
The economist pinned hopes for a European recovery on the European Central Bank which he referred to as being more decisive while European politicians were not moving fast enough, to resolve the regions challenges.
http://www.businesslive.co.za/southafri ... -economist
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No matter the era, whichever the society, people always gaze at the stars when young. Then they stretch out their hands and try to catch them. And then one day, they realize their arms are not long enough to catch the stars, and thats when they grow up.