Greece's recession will drag on longer than currently foreseen, the OECD said in a report published on November 27, urging Athens to focus on reforms to kickstart its economy rather than cutting its deficit at all costs.

According to the OECD Economic Outlook 2012, a twice-yearly analysis of the major economic trends and prospects for the next two years, the global economy is expected to make a hesitant and uneven recovery over the coming two years while, decisive policy action is needed to ensure that the stalemate over fiscal policy in the United States and continuing euro area instability do not plunge the world back into recession.

For Greece in particular, the Outlook, foresees that the economy will remain in recession until the end of 2014, due mostly to fiscal retrenchment. As confidence returns, competitiveness improves and structural reforms take effect, growth is expected to pick up.

It is vital to vigorously implement structural reforms, including combating tax evasion, enhancing efficiency in public administration and removing barriers to competition, as the only path to the renewal of sustained growth in Greek living standards, the report further states.