ATHENS, Greece (AP) — The International Monetary Fund says Greece still faces an uphill struggle after the forthcoming end of its bailouts, and its long-term debt sustainability remains uncertain.
In a report made public Tuesday the IMF recommended a reduction in high direct taxes, which were imposed to right the country’s public finances but constrain growth.
The economy is expected to grow 2 percent this year and 2.4 percent in 2019 but will slow to 1.2 percent in 2022.
The IMF, which contributed to Greece’s bailout loans, said European creditors’ agreement last month to ease loan repayment terms ensures medium-term sustainability for the debt. It will fall from a staggering 188 percent of annual output this year to just below 140 percent by 2037.
After that, however, the debt-to-output ratio will begin to rise.