With the International Monetary Fund (IMF) concluding its evaluation and visit to Ghana, many Ghanaians and investors alike are on the lookout for what the next course of action will be and what the future holds for us as a country.
Amongst other things, the discussions between the team from IMF led by Carlo Sdralevich and Ghana’s representatives, the Vice President; Dr. Bawumia, the Finance Minister; Ken Ofori-Atta, and the Governor of the Bank of Ghana; Ernest Addison, focused mainly on how to sustainably improve the fiscal balance of the country while protecting the vulnerable and poor.
They stated that they will continue to keep an eye on the situation in Ghana and engage the authorities on the formulation of their Enhanced Domestic Program.
At the end of the IMF team’s visit to Ghana, they noted: “Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment. The fiscal and debt situation has severely worsened following the COVID-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.”
“In addition, 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 manoeuvre. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.”
Ghanaians are however hopeful of the coming days as the team in their statement on Wednesday, indicated the Bretton Woods institution’s stance on Ghana’s situation.
“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.”