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Drastic fiscal consolidation and sharp wage cuts in order to improve fiscal balances and restore competitiveness have thrown the Greek economy in a deep recession, with real GDP contracting by 20% over the period 2008-2012 and expected to decline by a further 5% in 2013. The sharp contraction of real GDP, combined with deflation, has worsened public debt dynamics, with the public debt-to-GDP ratio expected to peak at 178% in 2013, up from 129% in 2009, despite the debt-restructuring (PSI) in March 2012 and a number of debt-relief measures (OSI) in December 2012.