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IMF attributes Ghana's economic crisis to extravagant election spending in 2020

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has cited a variety of factors contributing to Ghana's recent economic difficulties, including the repercussions of the COVID-19 pandemic and unwise fiscal practices during the 2020 election season.

Nana Addo

Speaking during an interview on Accra-based Citi FM on Monday, March 18, 2024, Georgieva underscored the importance of drawing lessons from past experiences and applying them to future policymaking endeavors.

She emphasized the effectiveness of robust macroeconomic and financial governance in navigating economic uncertainties, stressing the necessity of implementing resilient fiscal and monetary strategies capable of withstanding global financial pressures while fostering sustainable growth.

She said "The best avenue to pursue that is to get your policies in good order, get your institutions to deliver transparently for the economy for people. Nothing is more effective than strong macroeconomic and financial performance in a country.

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"We have seen in Ghana, yes it was the COVID-19 shock that brought so much hardship on people. But it was also the excessive spending during the general elections period. Learn lessons from the past, apply for the future."

Georgieva also urged African governments to adopt Artificial Intelligence (AI) as a catalyst for rapid economic development across the continent.

She emphasized AI's transformative potential in reshaping global economies, particularly in labour markets.

Addressing attendees at the Artificial Intelligence (AI) Summit, Georgieva outlined key areas crucial for fostering growth.

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She said "This is the likely largest transformation of our economies that we have experienced since the Industrial Revolution. It can be this big bang that allows us to live longer, healthier, better educated, more productive lives. But it is not given that we would take advantage of the benefits and manage well the risks. We face urgently the necessity to embrace AI and make the best out of it."

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