The Executive Director of the Institute of Fiscal Studies (IFS), Professor Newman Kusi, says it is not possible for the country to come out of the International Monetary Fund (IMF) programme with a
Ghana in 2015 reached a three-year $918 million financial package with the IMF to support a reform programme aimed at faster growth and job creation while protecting social spending.
The reform programme also aimed at tighter fiscal discipline, stronger public finances and lower inflation.
President Mahama at the campaign launch of the National Democratic Congress (NDC) last Sunday noted that the country will come out of the IMF programme with a robust economy including achieving a single digit inflation.
He said:“We’ll come out of the IMF programme with inflation at single digit, a deficit of GDP [Gross Domestic Product] below 3 percent and debt to GDP [ratio] below 60 percent, a stable currency and significantly lower interest rate.”
However, in a newspaper interview, Prof. Kusi said the president’s prediction is not feasible, quizzing how the Mahama-led administration is going to achieve the single digit inflation.
“With inflation at 16.7 percent, how is the president going to bring it down within 10 percent by next year, through what means,” he told the Daily Guide newspaper.
“From the way things are going, I don’t see inflation coming down to single digit,” he added.