Greek think-tank in recession warning

Greece’s most influential think-tank has warned of a sharp drop back into recession in a report that came after parliament approved a second package of reform measures aimed at securing a new bailout from international lenders.

In its quarterly report, the IOBE institute said capital controls imposed last month to stop a bank run pushing the financial system into collapse would exact a heavy toll across the economy.

Reversing a forecast for growth this year of 1% made as recently as April, it said the economy would contract by as much as 2% to 2.5% after growing 0.7% in 2014 and would remain in recession next year as well.