Greece crisis poses little threat to global economy: IMF

The ongoing Greece economic crisis poses a little threat to the rest of the world as the global economy has withstood the stress tests of the last two weeks fairly well, the International Monetary Fund said today.
"There is little question that Greece is suffering and may suffer even more under the scenario of a disorderly exit from the Eurozone. But the effects on the rest of the world economy are likely to be limited," Director of Research Department IMF Olivier Blanchard said.
"Mechanical linkages, through trade or finance, are small. And while one should always worry about contagion and unknown unknowns so far these have not materialised," he said, adding that the world economy has withstood the stress tests of the last two weeks fairly well.

Blanchard said as dramatic as the events in Greece are, it accounts for less than two per cent of the Eurozone GDP, and less than one half of one per cent of world GDP.
"Of course, we continue to hope for and work toward a positive solution by which Greece remains in the Eurozone. There is, however, a larger lesson to be drawn," he said.
"The post crisis world is a world with high debt. It does not take much for debt dynamics to get out of control. We are likely to see and we have to be ready for more episodes of this kind, be it for states, or for financial institutions, or for firms," Blanchard added.