Turbulent Outlook for Greece

The escalating confrontation between Greece and its international creditors has further devastated Greece’s economic outlook, according to three PIIE experts. Jacob Funk Kirkegaard says that voter rejection of creditor demands in a referendum on July 5 will be disastrous, but even a voter approval will not necessarily reopen banks right away. Simeon Djankov says a failure of Greek banks will damage the economies of six neighboring countries. Ángel Ubide explains that months of disagreement between Greece and its creditors has worsened Greece’s economic prospects.