ATHENS: Greece now has "relatively few" problems left to solve following a "very rough" several years of recession and harsh austerity cuts, the country's central bank said Thursday in a cautiously upbeat annual report.
"In the past few years, we have covered some very rough ground at high cost to the whole of Greek society," central bank governor Yannis Stournaras said.
"If we can address the relatively few issues still pending and complete the first phase of the effort launched in 2010, we will then be able to move on to the next phase, in which the growth potential of the economy will be considerably enhanced."
He was also upbeat on economic output after last year's return to growth of 0.7 percent following six straight years of recession in which gross domestic product (GDP) contracted more than 25 percent.
"Based on the latest available data, GDP growth is projected to be positive in 2015 and to pick up in 2016," Stournaras said.
The main risks to growth in the medium term are of Greece not fulfilling the terms of its 240-billion-euro ($270-billion) bailout, a deterioration in public finances and "reform fatigue," he said.
"If these uncertainties can be contained, then the economy can and should continue to recover in 2015, driven by exports of goods and services and by private consumption and supported also by rising business investment," he said.
On Tuesday Greece's new anti-austerity government secured from its creditors a four-month extension to its bailout with a list of planned reforms and after Prime Minister Alexis Tsipras toned down some of his election campaign promises.
The International Monetary Fund, the European Central Bank and Germany, the biggest contributor to Greece's bailout, have however stressed that Athens still has a huge task ahead of it to solve its many problems and stay in the euro.
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