Ghana’s economy is showing strong signals of improvement since the implementation of the first phase of the International Monetary Fund (IMF) programme, says IMF Resident Representative to Ghana, Ms. Natalia Koliadina.
She said Ghana’s current fiscal consolidation and a reduction in government deficit indicated that the economy was on the path of growth.
Speaking at the third national civil society forum on Ghana’s IMF programme in Accra, Ms. Koliadina said Ghana was on track regarding its position with the Fund.
She said the country’s fiscal deficits have reduced from 10 per cent to 7 per cent which she said was good for Ghana’s macro-economic stability.
She said the decision by government to access the Fund was a good move for Ghana and urged the government to intensify its education for the populace to understand the significance of the Fund.
She said policies and programmes instituted by the IMF was to ensure that the country regain its position as one of the fastest growing economy in Africa.
Professor Godfred Bokpin, Associate Professor and Head of Department of Finance at the University of Ghana Business School noted that, though, the Fund had brought some economic relief, Ghana’s economy was struck with large fiscal external imbalance.
He noted that some economic indicators such as inflation, Gross Domestic Products and debt sustainability issues were yet to witness improvement despite the IMF programme.
“We see from the major economic indicators that one year down the lane, much is yet to be seen of the benefits of the programme albeit significant strides in some of the indicators especially at the macro level.
“For some of the indicators, not much progress has been made while in some cases, the situation has worsened. That notwithstanding, several of the structural benchmarks are being worked on,” he said.
In April last year, the Executive Board of the IMF approved a three-year arrangement under the Extended Credit Facility for Ghana in an amount equivalent to US$918 million in support of government’s medium term economic reform programmes.
The Fund instituted measures which include restoring macroeconomic stability, restoring the effectiveness of the inflation target framework and implementing a prudent borrowing strategy among others to stabilise the economy.
By Bernard Benghan