Greek economy is expected to grow by 0.7 percent in 2014 after six years of steep recession, while unemployment rates are expected to drop to 26.7 percent from 27.3 percent in 2013, a leading Greek think tank said on Wednesday.

Presenting their quarterly report on Greek finances in Athens experts of the Greek Foundation for Economic and Industrial Research (IOBE) attributed the improvement to a large degree to the rising tourism revenues.

Last year international tourist arrivals to Greece rose by 15.5 percent and the trends are also positive this year.

According to IOBE economists, higher household consumption following the decline of jobless rates is also expected to contribute to the exit from recession.

Greece's European Union and International Monetary Fund creditors have projected a 0.6 percent growth for this year in their latest estimates, while central Bank of Greece experts have given a more conservative projection of 0.5 percent.

In regards to the banking sector, IOBE expects that the new pan European stress tests later this year will show that Greek lenders do not need further funding for recapitalization.

The Greek economists also noted that political stability after the recent European and local government elections in May was also a significant factor which supports return to recovery, since the government can continue on the path of fiscal consolidation and structural reforms needed to pull Greek out of the crisis.

The debt-laden country has been relying on international rescue loans since May 2010 to avoid default in exchange of painful austerity and reform policies.

Ahead of the next regular review of Greek finances by auditors of international lenders in autumn, IOBE experts suggest the fulfillment of prior actions agreed on as soon as possible to guarantee further aid to Athens.