The Government of Ghana has pledged to continue to work closely with the IMF in the coming weeks to complete an enhanced economic programme, in support of a robust economic recovery.
In a statement issued by the Ministry of Finance after a delegation from the International Monetary Fund (IMF) concluded a one-week working visit to Accra, the government expressed its gratitude to the Mission Team for its visit as well as for reaching a constructive engagement with the country.
“In the meantime, Government reiterates its commitment to the various fiscal policy measures, geared towards mitigating the impact of current global economic headwinds on the economy and Ghanaians.
“The Ministry of Finance further assures Ghanaians of the Government’s steadfast commitment to a speedy economic recovery, towards achieving a Ghana Beyond Aid”.
Ministry of Finance
During the visit, the IMF delegation held high level meetings with stakeholders and discussed possible support for Ghana’s domestic economic recovery programme, the Ministry of Finance noted.
End-of-mission press release issued by IMF
The Ministry further acknowledged that it took note of the end-of-mission press release issued by the Fund on 13th July, 2022, which among other things stated that 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 manoeuver”.
Ministry of Finance
The Ministry of Finance, further quoting the IMF’s statement, added that “These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation”.
The Ministry of Finance further disclosed that the IMF team held initial discussions which focused on improving fiscal balances in a sustainable way while protecting the vulnerable and poor as well as ensuring credibility of the monetary policy and exchange rate regimes.
The discussions also touched on preserving financial sector stability; and designing reforms to enhance growth, create jobs, and strengthen governance, the statement from the Ministry indicated.
IMF concludes visit to Ghana
A delegation from the International Monetary Fund (IMF), on Wednesday 13th July, 2022, concluded a one-week working visit to Accra.
After the visit, the Fund indicated it will monitor the situation and help the country roll out its proposed program to address the current challenges and also pledged its continuous support for the country as it navigates the current economic crisis.
On July 1, 2022, President Akufo-Addo directed the Finance Minister, Ken Ofori-Atta, to begin formal engagements with the International Monetary Fund for an economic support.
The engagement with the IMF, according to the statement, was to provide a balance of payment support as part of a broader effort to quicken Ghana’s build back in the face of challenges induced by the COVID-19 pandemic and recently, the Russian-Ukraine crisis. The engagement with the Fund by Ghanaian authorities, began on July 6, 2022 and ended on Wednesday, July 13, 2022.
Ghana is severely hit by the recent developments within the global economy and faces high debt levels, lost access to the international capital market and inflation has since risen to 29.8% at End-June, 2022, the highest since December, 2003.
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