Greece’s economy is making strides to recover from its economic crisis, and labour market reforms have improved competitiveness and are helping create jobs, according to a new report by the OECD. GDP growth is also picking up steam and is projected to remain above 2% this year and next.

The report highlights the reform efforts of the past two years with public finances strengthened.

“The reforms undertaken by Greece have finally started to bear fruit,” OECD Secretary-General Angel Gurría said. “It is an impressive achievement. With strengthened public finances and a much-improved macroeconomic framework, addressing poverty and raising living standards is a priority,”

Unemployment, poverty and inequality remain high, according to the report

The OECD called for improving workers skills, vocational training, introducing sectoral collective wage bargaining while maintaining the flexibility of the current system.

Greece must also continue to reduce vulnerabilities.

“High levels of public debt and bad loans in the banking system make Greece’s economic outlook highly sensitive to shocks such as slower growth among trading partners or a rise in debt service costs after the Stability Support Programme ends in August 2018,” according to the OECD.