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Ghana’s Economic Situation Is Caused By External Factors – IMF

Ghana’s economic situation seems to worsen by the day as Cedi keeps depreciating and inflation keeps rising. Prices of goods and fuel have increased over the past week.

But according to the International Monetary Fund, this situation can not be attributed to domestic wrongdoings. Speaking at the Africa Adaptation Summit in the Netherlands earlier this month, IMF’s managing director, Kristalina Georgieva, stated that Ghana was just a victim of a global financial meltdown and the current situation was no fault of the government. She attributed the challenges to external factors such as the impact of Covid-19 and the Russian-Ukraine war. Madam Kristalina Georgieva noted that domestic policies had little impact on the Ghanaian economic crisis.

“To the people of Ghana, like everybody on this planet, you have been hurt by exogenous (external) shocks. First, the pandemic, then Russia’s war in Ukraine. We need to realise that it is not because of bad policies in the country but because of this combination of shocks, and therefore we have to support Ghana.” Georgieva said.

Earlier this week, Director of Communications at the IMF, Gerry Rice, revealed that the Fund had completed its first discussions with the government of Ghana. According to Mr Rice, the meetings were constructive and productive. He noted a second delegation was on it way to the country to continue negotiations and processes laid down by the first group. Mr Gerry Rice was speaking at a media forum on the process of Ghana’s upcoming programme under the Fund.

“we had an IMF staff team in Accra in July [2022] to begin initial discussions with the Ghanaian authorities. And we characterized that mission as constructive, kick started the process, and laid the groundwork for engagement, which now continues. Our Mission Chief for the IMF also recently visited Accra, again, to meet with key counterparts. And we’re hopeful for another visit in the coming weeks, I don’t have a date for you, but in the coming weeks”, he added.

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