It lowered its forecast for next year's economic growth to 2.5-3% from 3.5-4%.
GKI said it changed the forecasts because of "higher-than-expected first-quarter growth, more extensive austerity measures than previously expected and faster-than-expected inflation, the deteriorating global political situation and tensions in the relations with the European Union".
GKI projects domestic consumption will grow 4% as household consumption increases 5.5% and investment growth reaches 2%.
It puts the general government deficit at 5.9% of GDP. However, reaching an agreement on EU transfers is a precondition for achieving the 4.9% deficit target.
It sees inflation rising to 10.2%.
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