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In a new report released yesterday, the International Monetary Fund (IMF) is advocating for more taxes and aggressive expenditure cuts by government to contain the country's rising public debt.
The report also said Ghana's economic recovery will depend on stabilising the current power crisis.
The current economic crisis could also improve when prices of gold and crude oil improve, the report added.
JoĂ«l Toujas-BernatĂ©, IMF Mission chief for Ghana said, âlarge decline in commodity prices, gold, oil and cocoa will mean lower exportsâ which will translate into lower revenues, âmaking the advancement in the fiscal and external balances more difficult."
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Government in response to the IMF admitted that this year will be difficult because of the current development in the international market.
The report also called for some policy rate hikes which currently stands at 26% to increase. Furthermore, the report said government should contain inflation rate which currently stands at 17.7% which the IMF says is higher than what they envisaged under the programme.