The Foundation for Economic & Industrial Research (IOVE) has predicted that the gross domestic produce (GDP) in Greece will shrink by 1% in 2016, following the 0.3% rate for 2015.

According to IOVE’s quarterly report on the Greek economy, the upcoming measures provided in the bailout are expected to have a negative effect on private consumption, employment, retail and the food sector, in spite of the predicted boost in tourism.

The rate of unemployment is expected to increase to 25.2% in 2016, compared to the 24.4% rate that was documented in the final quarter of 2015.

Although deflation will be bolstered by the drop of disposable income, as a result of the new fiscal measures, the VAT hike and upcoming increase of indirect taxes will provide some relief.

Finally, the IOVE report predicts no significant change in the rate of inflation, perhaps a slight decline in prices, for 2016.