The International Monetary Fund (IMF) cut down its growth forecasts for the Greek economy to -6% this year from the previously estimated 4.5%, while the deterioration will ease in 2012 to -3%, as the strong austerity programs and tough conditions imposed by international lenders are likely to push the economy into a deepening downturn.

The IMF also said the severe austerity measures would make meeting the deficit cut targets had to attain while would make the budget deficit reach 9% of GDP instead of 7.5%, where Greek officials referred that the shortfall may exceed 10%, thereby increasing the likelihood of seeing further spending cuts.