EIU warns Grexit still a threat

A report by the Economist Intelligence Unit (EIU) on risks to the global economy warned on Wednesday that Greece is more likely to leave the eurozone than stay in the currency union.

It added that the chances of Greece's exit from the euro area triggering the departure of more eurozone members such as Italy in the next couple of years are estimated at between 0 and 10 percent. However, should such a development occur, it could generate a decline in global growth by one to two percentage points.

According to the EIU analysts, Greece suffers from problems such as the "deeply rooted corruption of its oligarchy" and the absence of foreign direct investment as a result of closed-shop professions, protectionism and hostility to foreign enterprises, resulting in a shortfall in competitiveness.

Consequently, the report noted, a Greek departure from the eurozone would not...