IMF sees significant improvement in Greece’s prospects

Greece's economic outlook has improved notably, but significant challenges remain, the IMF said in a report released on Wednesday.

The economy has resumed income convergence, ending a decade of stagnation with high unemployment and low investment amid large deleveraging, it said and added: "Real GDP has expanded beyond the pre-pandemic trend level, driven by the cyclical recovery of tourism demand and the resumption of structural reforms and investment in the context of Next Generation EU." 

"Strong growth and high inflation have brought the public debt-to-GDP ratio down below its pre-pandemic level with limited financing risks in the medium term due to the favorable debt structure.

However, despite regaining sovereign investment grade status and improving bank balance sheets, the economy is facing macro-financial challenges amid significant monetary policy...