Ghana could get IMF support by first quarter of 2023 – Report
We reaffirm our commitment to support Ghana in these difficult times – IMF
Officials from the International Monetary Fund (IMF) have concluded their visit to Ghana which was aimed at assessing the economic situation as well as engaging in the Enhanced Domestic Program which government intends to enroll.
In a statement by Carlo Sdralevich, mission chief for Ghana, the team observed that the country’s economy was affected by the adverse impact of the COVID-19 pandemic and the Russia-Ukraine war.
The Bretton Woods institution said the twin crisis has derailed Ghana’s recovery efforts which led to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.
It, however, added that it remains committed to supporting Ghana at this difficult time.
“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.”
Meanwhile, the IMF in its statement outlined some key challenges facing Ghana at the moment.
GhanaWeb Business takes a look at four key findings by the IMF Mission team to Ghana
1. Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment.
2. The fiscal and debt situation of Ghana has severely worsened following the COVID-19 pandemic.
3. Investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.
4. The IMF said the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the COVID-19 pandemic shock and with limited room for maneuver.
The IMF team over the past 7 days held discussions with Ghanaian authorities focused on improving fiscal balances in a sustainable manner.
It also focused on engagements centered on ensuring credibility of the monetary policy, exchange rate regimes; preserving financial sector stability; designing reforms to enhance growth, create jobs, and strengthen governance.
MA/FNOQ
The International Monetary Fund