MARKETS: Greece falls back into recession

By Jameel Ahmad, Chief Market Analyst at FXTM

While all attention on Greece has been focused on the prolonged negotiations with creditors, the economic data has taken a step backwards in 2015 and it is not surprising to hear that the Greek economy has fallen back into recession.
Unless these ongoing and continually dragging negotiations come to a swift conclusion, there is a real risk that the complete divergence in economic sentiment that has already contributed to some intense market volatility this year will happen within Europe. By this I mean that we are noticing that European economies are benefiting from a mixture of the ECB’s policies achieving a weaker currency and budgets being eased following the decline in the price of oil, but it is clear that Greece is being left behind.
This is what I am looking at moving forward and for as long as these Greek negotiations continue to fail in presenting anything tangible, both investment will remain low and consumers will hold back from spending as a result of continual uncertainty.
As a result, the Greek economy will continue to suffer.

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