Ghana's Economic Recovery Under Threat, IMF Warns
Ghana's progress in stabilizing its economy is at risk of being derailed due to external shocks, delays in policy implementation, and lingering structural weaknesses, the International Monetary Fund (IMF) has warned.
Despite some progress in restoring macroeconomic stability and addressing fiscal challenges, the IMF cautioned that Ghana's economic gains remain fragile and require sustained efforts to consolidate.
The Fund emphasized the need for Ghana to maintain fiscal discipline, improve revenue mobilization, and ensure timely execution of reforms to solidify the recovery process.
Ghana's economic reform programme, backed by the Extended Credit Facility (ECF), hinges on timely disbursement of funds and strict adherence to policy measures to address mounting debt vulnerabilities and improve economic resilience.
The IMF urged the government to remain focused on its reform agenda, stressing that any deviations could reverse the progress achieved.
It called for strong collaboration between policymakers, Parliament, and stakeholders to ensure the programme's success, paving the way for sustainable growth and long-term economic stability.
“While encouraging continued financial system recapitalization and tackling financial sector legacy issues remain important, further reducing inflation and rebuilding international reserves hinge on maintaining a prudently tight monetary policy stance and improving foreign exchange market operations.
“Finally, additional efforts to protect the vulnerable from the impact of adjustment and reforms are warranted to foster an inclusive recovery”,
“There have also been delays in the reforms needed to unlock access to budget and other types of support from key development partners, in part due to parliamentary gridlock. The political debate has been dominated by the December 7, 2024, general elections.
“Policy statements from leading presidential contenders highlight tackling debt risks, increasing employment, and addressing high costs of living as the main priorities, consistent with the objectives of the current ECF-supported programme”.
Source: Lead News Online
