Due to the burden on the budget, it would be better for BiH to rely more on private investment as a way to foster economic growth, whether it be local or foreign investments, said the Deputy Managing Director of the IMF Nemat Shafik at a lecture at the Sarajevo School of Science and Technology.
She pointed out that the creation of new jobs is the most important for economic growth, and the IMF estimates that the global economy this year will increase an average rate of more than three percent, but that most of that increase will be achieved in developing markets.
She added that one of the biggest challenges on which the IMF is working is to attempt to rebalance the budget with BiH authorities, in order to cut spending to bring more funds for investments.
“According to the IMF, BiH needs structural reform, especially improvement of the business environment and reform of the labor market. We believe that real workers need to be protected, and we have to guarantee that the labor market operates in a way that is conducive to job creation”, said Shafik.
