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Gross domestic product dropped by 4.5% in 2010 instead of the anticipated 4.2%. However, forecasts are that positive economic growth will recover in late 2011 and set up in 2012. The data are presented in the IMF report on the advance of the implementation of Greece's fiscal consolidation program, cited by the Greek edition Ethnos. The report was submitted to the Management Board of the Fund. After considering the results it will announce its decision whether Greece will receive the next installment of almost five billion euros on March 14 this year.

The report is expected to describe the macroeconomic development of the country in 2010 and the achievement of the goals of fiscal consolidation, financial stability and structural changes in the economy. The growth of orders in the industrial sector in November last year, the growth of export at the end of the year and of revenues from transport services are assessed as positive. For the first time in a long time the competitiveness of Greece has increased which is the first swallow of the reforms but it does not mean that the economic uncertainty frost has disappeared completely.
 
The report highlights that the competitiveness of the economy is improving and the reduction of the current account deficit, which is 11%, is reflecting this. The reason lies mainly in the trade deficit reduction. However, the inflation rate is higher than expected and reached 5.2% in December 2010. The IMF believes that the inflation rate will gradually decline this year and will reach much lower levels in 2012.

As for the implementation of fiscal consolidation, reducing the budget deficit by 6% of GDP is reported as extremely successful. The deficit was reduced from 15.4% of GDP to 9.6% of GDP in late 2010. Revenues were increased last year by raising taxes and VAT by 5.5% compared with last year's balance sheet. Costs were decreased by 9.1% after cutting ministerial budgets, state employees salaries, pensions and some social benefits.

The IMF recommends to reduce the tax burden and to take stronger measures to fight tax crimes and tax frauds. As important institutional reforms are noted the opening of professions, the bill on health, tax evasion prevention, unified salaries payment, liberalization of services and energy, and the measures the government planned to support export, trade, tourism and services as whole.