Invest in education and health to ensure that projected growth in 2019 creates jobs – the IMF must govern

News from Sunday, April 14, 2019

Source: Myjoyonline.com

2019-04-14

The director for Africa's International Monetary Fund (IMF), Abebe Selbadie, is asking the government to allocate more of its investments to education and health.

This, he believes, would ensure that the projected growth expected this year would create the jobs needed.

IMF's projected growth for Ghana

In its report on the economic outlook for 2019, the IMF forecast an economic growth rate of 8.8% at the end of the year. This could make Ghana one of the fastest growing countries in 2019.

However, it is to be feared that this growth will not materialize with the jobs expected in critical sectors of the economy.

The IMF boss in Africa explains why investment in health and education is very important

Responding to a question raised by JOYBUSINESS at the IMF Africa Department's press conference, Abebe said the government should continue to ensure that "it invests in the human population, schools and the health of the need to create jobs as the economy grows. "

He also said that it is very important that the government ensure that the public sector does not suffer any distortion in terms of macroeconomic aggregates.

Abebe also argued that policies need to be put in place to facilitate private sector investments that can improve credit to sectors that can create the jobs needed in the country.

IMF Africa Lead for the Ghana Post-IMF Program

Asked what Ghana should do to maintain the post-IMF agenda, Abebe said the government should ensure that budget deficits remain manageable and that funds borrowed by the government should be used for high efficiency.

The IMF chief for Africa was also of the opinion that the Bank of Ghana should also ensure that monetary policy sizing is consistent with controlling inflation and the exchange rate at competitive levels.

"You know, the kinds of things that the government has been doing for the past two years and staying on course is important," he said.

However, he congratulated the government for the reforms it has put in place so far to strengthen institutions.