ATHENS (Reuters) – Greece’s economy is expected to grow by 2.2% this year, slightly lower than initially projected, due to the expected impact of U.S. tariffs on Europe, think tank IOBE said on Tuesday.
The Foundation of Economic and Industrial Research (IOBE) had forecasted growth of 2.4% in January.
“The escalation of the trade war could lead to disruptions in growth rates, inflation and the international financial system,” IOBE said in its report.
Greece’s economy, with only 5% of its total exports heading to the United States, will see limited direct impact from tariffs but it might see demand from EU countries for its products and tourist services drop, while rising global uncertainty could dent the appetite for investment.
(Reporting by Lefteris Papadimas; Editing by Kirsten Donovan)
