Greek exit from the eurozone can result in turmoil in the country and create domino effect in the single-currency bloc, a German economist warned in a recent interview with Xinhua.

Horst Loechel, professor of economics with Frankfurt School of Finance & Management, told Xinhua on telephone that efforts should be made to keep Greece in the eurozone.

Loechel elaborated on the Greek exit scenario.

In case of the Greek exit, Greek banks and the state will go bankrupt. The drachma, the unit of money used in Greece before the euro, will be recirculated after the exit and will inevitably be devalued against the euro.

The banks, private creditors and the European Central Bank, which are holding the Greek government bonds, will suffer a great loss. People's savings in Greek banks will shrink. The country will be gripped by turmoil.

According to Loechel, the Greek exit carries a risk of domino effect in countries like Spain and Italy.

"In that case, the euro can hardly be kept as it is now," he said. "In my point of view, efforts should be made to keep Greece in the eurozone."

The result of the Greek elections in May has driven home that most of the parties and Greek people prefer to stay in the euro, Loechel said.

If the ruling party, which will emerge from the upcoming elections in June, insists on renouncing the bailout deal, then the Greek exit will be possible, he said.

"It is up to the Greek people whether Greece will remain in the euro," said Loechel.

At present, economic growth is the most important issue for Greece, Loechel said. It is hard for a country which is faced with economic recession to stick with austerity.

It is necessary for a country to expand the expenditures to handle a financial crisis, but a state in crisis will have a shortfall of income such as tax revenues, Loechel said. He added that it is unavoidable to witness a rise of the debt level in times of economic crisis.

The austerity will take effect in the longer term and can be complemented by growth to address crisis in the short term, said Loechel.

"So measures should be taken to stimulate the economic growth in the country," he said.

In order to implement economic growth policies or plans, Greece needs funds which it does not have, Loechel said. He suggested that institutions like the European Investment Bank can finance economic growth in Greece.

Unless the bailout providers make changes to the stance of insisting on implementing austerity measures, there can be hardly any breakthrough of the Greek issue, said Loechel.