The IMF led by Carlo Sdralevich has reaffirmed the government of Ghana's position that the country's economic hardship is partly a result of the COVID-19 pandemic and the Ukraine-Russia war.
COVID-19 and Russia-Ukraine war affecting Ghana's economy – IMF
The International Monetary Fund (IMF) staff team concluded its visit to Ghana with the government on Wednesday, July 13, 2022.
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The IMF team met with Vice President Dr. Mahamudu Bawumia, Finance Minister Ken Ofori-Atta, and Governor Ernest Addison of the Bank of Ghana.
Carlo Sdralevich said: "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."
He expressed the commitment of the IMF to support Ghana at this difficult time, consistent with the IMF's policies.
According to him, "The IMF team held initial discussions on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability. The team made progress in assessing the economic situation and identifying policy priorities in the near term. The discussions focused on improving fiscal balances in a sustainable way while protecting the vulnerable and poor; ensuring the credibility of the monetary policy and exchange rate regimes; preserving financial sector stability, and designing reforms to enhance growth, create jobs, and strengthen governance.
"IMF staff will continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholders’ consultation
"We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF's policies.
"Staff express their gratitude to the authorities, civil society, and development partners for their constructive engagement and support during the mission."
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