"Greece has made significant progress in unwinding its macroeconomic imbalances, but growth has remained elusive and risks are high," the release stated.
While growth prospects remain weak and face high downside risks, unemployment will likely be in the double digits until the middle of the century, according to the release.
The IMF urged the Greek authorities to pursue "deep" reforms to increase economic resilience and improve the budget structure.
"Even with full implementation of this demanding policy agenda, Greece requires substantial debt relief calibrated on credible fiscal and growth targets," the IMF noted.
The Greek economy has been severely strained for nearly a decade primarily because of the country’s significant debt, which runs in the hundreds of billion of euro.
Greece's international creditors signed an agreement with Athens last summer, approving a third bailout package worth about 86 billion euros ($97.3 billion) in exchange for unpopular reforms, including pension cuts and tax hikes.