IMF report: Greece devastated by bank holiday

Greek crisis impact mild on markets says IMF

The spillover effect of the Greek crisis on global markets was relatively limited, an IMF report on the World Economic Outlook (WEO) asserts.

The reactions of markets were more or less patient, with a slight rise in government bond prices, which are still considered a safe investment.

The report projects the impact on the Greek economy will be devastating due to the latest developments. It makes reference to the Greek referendum and the bank holiday, events that brought about great uncertainty and hurt economic activity immensely.

Short-term Greek government bonds skyrocketed as a result of the ongoing impasse in negotiations with EU partners and the referendum. The overall outlook for the Eurozone county economies is positive, however, the outcome of the Greek crisis could take a heavier toll on the initial prediction of the Eurozone economies.