Economic growth in Europe is very strong and this year it was recorded in all the countries of the Old Continent, said Jorg Decressin, the deputy director of the International Monetary Fund (IMF), in Sarajevo.
When it comes to BiH and its European path, the deputy director of the IMF stated that the challenges of improvement of management and work of institutions, the judiciary in particular, remain the same.
Decressin presented conclusions from the report of the IMF “Regional Economic Perspective for Europe” for the autumn of 2017.
“This is the first year after the global economic crisis in which all European countries recorded the growth. I expect this strong growth to continue in the medium term in Europe. However, certain risks do exist. There might be some surprises that seem to be positive in the short term. Growth may be stronger than we expect. We expect some negative surprises that are possible in the mid-term, such as certain geopolitical risks and certain developments in the financial markets,” stated Decressin.
According to him, the challenge in these “good times” is to make enough fiscal space for maneuvering and decrease of fiscal deficits.
When it comes to the program that BiH has with the IMF, Decressin briefly explained why the IMF is instigating on the increase of excises on fuel in BiH.
“The thing that we want to see in the program with BiH is stronger growth. What would be possible with new excises in BiH is to release a lot of resources that are needed for the construction of infrastructure. The construction of infrastructure would mean higher growth, more workplaces, and higher income for citizens, and this should stimulate better overall growth in BiH. As for all the other questions regarding the IMF program and mission in BiH, I would ask you to wait for the conclusions that will be presented by the Head of Mission for BiH Nadin Ilahi on November 22,” concluded Decressin.