President Nana Addo Dankwa Akufo-Addo has said Ghana’s deal with IMF is going to provide the country with the foundation to redirect the economy to regain microeconomic stability.
The deal, he said, would also help the country to be able to have better control over important data like interest rates and inflation.
Ghana received GHC600 million – the first tranche of the IMF GHC3 billion bailout after it approved the deal last Wednesday, to help restore macroeconomic stability and debt sustainability towards economic recovery.
Speaking during a panel discussion on Bloomberg TV at the 2023 Qatar Economic Forum Wednesday, President Akufo-Addo said it was important that Ghana seek support from the Fund considering the economic situation the country was experiencing.
The President, who justified Ghana’s recent IMF deal, said the support from the Fund would position the country to be able to go back to the international capital market.
“Before the COVID- pandemic the Ghanaian economy had achieved microeconomic stability and was in the process of rapid growth. Come the COVID-19 pandemic, followed by the Russia-Ukraine disaster had a tremendous impact on our economy.
“Suddenly, we were facing major challenges on our balance of payment, our currency was in steep decline, interest rates went out of the window, inflation… and that is what forced us to seek the assistance of the Fund…”
Before the IMF Board approval, several of Ghana’s macroeconomic indicators had shown signs of improvement manifested in four months of conservative decline in inflation, stable currency and decline in interest rates.
Last week, Ghana’s central bank paused its steepest phase of monetary tightening, after clinching the US$3 billion lifeboat from the IMF and Ghana now expects the downward trend in inflation to continue.
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