President Nana Addo Dankwa Akufo-Addo has said that his government will use the International Monetary Fund (IMF) support to restore the economy to the position it occupied prior to the outbreak of the Covid pandemic.
Mr Akufo-Addo said this will be done before the 2024 general elections to enable the New Patriotic Party (NPP) administration to break the 8-year electoral cycle.
Speaking at the Gbewaa Palace in Yendi as part of a courtesy call on the on Ya-Naa Abukari II during three-day working visit to the Northern Region, Mr Akufo-Addo said “I wish to also thank the Yaa Naa for the support he has given my government in our negotiations with the International Monetary Fund, the traditional ruler who speaks about this with so much understanding and I appreciate that very much.
“Just as my government worked to bring the country out of the IMF programme that we inherited in 2017, to build a strong economy before the Covid and Russian invasion of Ukraine happened, again we are going to go through the IMF negotiations and bring the economy back to a strong place before 2024 elections.
“All of that is in order to place the NPP in a good place to carry out its pledge of breaking the 8 in 2024.”
The International Monetary Fund (IMF) staff team led by Carlo Sdralevich that concluded its visit to Ghana with the government of Ghana on Wednesday July 13, also indicated that the war is affecting Ghana
The team arrived in the country July 6 to assess the current economic situation and discuss the broad lines of the government’s Enhanced Domestic Programme that could be supported by an IMF lending arrangement.
At the conclusion of the mission, Mr. Sdralevich issued the following statement 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 maneuver.
These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.
“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 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.”