The Foundation for Economic & Industrial Research (IOBE) forecasts the Greek economy will shrink by 1 percent of GDP for 2016 in its three monthly report. The research institute predicts a rise in unemployment with private consumption dropping by 1-2 percent, while it expects public expenditure to be curtailed by 2-3 percent due to the resumption of fiscal adjustment. ‘The GDP figures will decisively depend on when the review of the Greek program and will be completed and what characteristics it will take’, the institution says. Unemployment is projected to reach 25.2 percent in 2016, compared to 24.4 percent in last year’s final quarter. The report adds that in the event there is a rift between the Greek side and its creditors the consequences will be dramatic, with ‘long and short term damage irrevocable’.