The International Monetary Fund says Greece has made "exceptional" progress in stabilising its economy.
The IMF says Greece remains on course to emerge from a near six-year recession in 2014, despite missing targets for privatisation and axing state jobs.
In a 207-page report published on Wednesday, the Washington DC-based institution also cautioned that Greece needs to make major structural reforms so its economy can grow in the long-term.
Greece's coalition government is struggling to meet staff reduction targets in the large public sector, and is due to announce details later on Wednesday of its plan to suspend up to 25,000 employees on reduced pay by the end of the year. Though some will then be transferred, the government admitted that some won't find a new job and will be fired.
The country has been surviving on rescue loans from the IMF and other eurozone countries since 2010, when it lost access to long-term debt markets.
Austerity measures demanded in return for the 240 billion euros ($A353 billion) bailout program have hammered the economy and seen unemployment surge to 27 per cent.
Greece's annual economic output is around a fifth smaller than when it entered recession in 2008.
"The fiscal adjustment remains exceptional by any international standard," the IMF said.
The IMF described the country's privatisation program as being "painfully slow" and expressed concern that mass staff transfers and firings planned in the public sector may not have the desired effect.
Poul Thomsen, the IMF's mission chief in Greece, says he is confident the recession will end soon and that eurozone countries will make good on their pledge to provide Greece with additional debt relief after Athens balances its state budget.
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