economy have bolstered the economic climate and led to an increase in bank deposits, to upgrades of the credit ratings of the greek sovereign and to successive reductions in greek banks ’ dependence on emergency liquidity assistance ( ela ). these better prospects also resulted in sovereign bond yields falling to january 2016 levels, thereby allowing the greek government to return to the markets in july 2017 for the first time in three years. corporate bond yields also fell and greek banks returned to international financial markets with covered bond issues. against this background, it is reasonable to anticipate a pick - up in growth for 2018, with gdp 3 / 7 bis central bankers'speeches growing by 2. 4 %, driven by : ( a ) the solid performance of tourism ; ( b ) stronger manufacturing output, reflecting the improved business environment and heralding a rise in business investment ; ( c ) increased exports ; and ( d ) favourable global economic conditions. hicp inflation returned to positive territory in 2017, posting an average annual rate of 1. 1 %, compared with 0 % in 2016. the weakening of deflationary pressures is mainly attributed to the sharp upswing of international oil prices, particularly in the first five months of the year, and to the inflationary impact of new indirect taxes, effective from early 2017. in 2018, domestic inflation is expected to be determined largely by base effects, which will keep inflation in positive territory, but lower than in 2017. it is, however, worth noting that the favourable projections rely crucially on the assumption that the fourth and last review of the current economic adjustment programme will be completed smoothly and according to schedule, without delays or setbacks, and that the implementation of reforms will continue unabated in the post - programme period. fiscal policy in 2016, greece ’ s general government primary balance – as defined in the economic adjustment programme – overshot the target set in the programme, for the second consecutive year. more specifically, the general government primary balance, according to the programme definition, turned out at a surplus of 3. 8 % of gdp in 2016, against a target of 0. 5 % of gdp. this overachievement reflected the better - than - expected performance of direct and indirect tax revenue, as well as the containment of social expenditure and of public investment. in the course of 2017 and in the context of the second review of the programme, a number of fiscal measures were adopted aimed at bolstering tax revenue, curbing tax evasion and, in

delimitation of state intervention in private initiative. the state ’ s role should be to regulate the institutional framework governing the private economy and provide oversight of performance and monitoring capacity rather than 6 / 7 bis central bankers'speeches acting as an entrepreneur - producer. furthermore, the use of public - private partnerships in a wide range of administrative procedures and in the delivery of public services would shift costs from taxpayers onto users, while at the same time enabling care to be taken to support the weaker groups of the population. second, speeding up the privatisation programme and the development of public property. with government intervention under the new productive model being limited to the role of overseerregulator, privatisations will increase public revenue, while also strengthening competition to the benefit of the consumer. third, changes in the tax system with a view to creating a clear and stable tax regime with lower tax rates for households and businesses and to broadening the tax base. fourth, expanding the use of electronic transactions to all types of economic activity, so as to effectively reduce the informal economy and increase public revenue with a fairer distribution of the tax burden. the success of this endeavour will crucially hinge upon citizens ’ familiarisation with digital technology applications, as well as upon building a taxpaying culture. fifth, emphasis on the “ knowledge triangle ” ( education - research - innovation ), with evaluation of higher education and linking research to funding and to the production process. this is so because linking higher education with the production process promotes innovation and the country ’ s competitive advantages. sixth, and most important, strengthening the operational independence of key institutions and the rule of law. for this to become possible, society and the political forces must understand that strong and sound inclusive institutions, which do not serve the interests of specific groups at the expense of others, promote the welfare of society as a whole. for the restart of the economy to be a success, the status of institutions – which is synonymous of confidence – needs to be elevated in future. weak and closed institutions generate uncertainty and disorientation, whereas strong, open and socially accepted institutions are necessary for a return to normality. * * * today, the greek economy is close to an exit from the crisis and a return to normality. the economic fundamentals, as recorded, so far, in the evolution of economic indicators, are encouraging. however, making the most of these favourable conditions calls for a comprehensive plan for the future, within a climate of social