COVID-19 and Russia-Ukraine war affecting Ghana’s economy – IMF

On Wednesday, July 13, 2022, the staff of the International Monetary Fund (IMF) and the government wrapped up their tour to Ghana.

The claim of the Ghanaian government that the COVID-19 pandemic and the Ukraine-Russia war are contributing factors to the nation’s economic difficulties has been reinforced by the IMF, headed by Carlo Sdralevich.

Vice President Dr. Mahamudu Bawumia, Finance Minister Ken Ofori-Atta, and Bank of Ghana Governor Ernest Addison also met with the IMF team.

“Ghana is experiencing a hard economic and social condition in an increasingly demanding global climate,” Carlo Sdralevich remarked. The COVID-19 pandemic has resulted in a dramatic worsening of the financial and debt crisis. Investors’ worries have also led to credit rating downgrades, capital outflows, a loss of access to external markets, and an increase in domestic borrowing prices.

Additionally, with little space for maneuver, Ghana is being hammered hard by the COVID-19 pandemic shock and the global economic shock brought on by the conflict in Ukraine. These unfavorable events have contributed to a slowdown in economic growth, an increase in unpaid bills, a significant depreciation of the currency, and a rise in inflation.

He expressed the commitment of the IMF to support Ghana at this difficult time, consistent with the IMF’s policies.

According to him, “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 the 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.”

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