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Ms. Obiageli K. Ezekwesili, World Bank Vice President for the Africa region, who said this in a video press conference Wednesday, which PANA participated here, noted that increased public debt, if not checked, could reverse the gains so far chalked by Ghana.
The IMF, during a recent mission in Ghana to assess the economy, asked the Ghana Government to strive to reduce fiscal deficits and its associated public borrowing to sustain and build on the favourable trends in inflation and macro-economic stability.
Ghana’s fiscal deficit in the first half of 2010 was 5.3 per cent of projected gross domestic product, slightly above the ceiling under government’s IMF-supported programme.
The video press conference, which saw about 30 African countries participating, was organized ahead of the annual meetings of the World Bank and the IMF, scheduled for 8-10 October.
It centered on reforms underway at the World Bank and the need for a robust replenishment of the International Development Association (IDA), the World Bank’s f und for the world’s 79 poorest countries.
The WB/IMF Annual Meetings bring together finance ministers of all member countries, central bankers, business leaders, academics and civil society to discuss economic development and progress in the fight against poverty.
Ezekwesili said Africa has rebounded from the financial crisis with growth projected to reach 4.5 per cent in 2010 and thereafter hit five per cent and above in 2011-12.
However, she said the growth would not be sufficient enough to pull more people out of poverty if it was not backed by investment in infrastructure and improvement in policy choices that ensure credible investment in the private sector.
Besides, she indicated that countries must draw on the lessons from the credible opportunities created for investment through reforms in sectors such as telecommunications and financial services.
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