Ghana, IMF agree on strategy for economic recovery

Mr Ken Ofori-Atta, the Finance Minister, says Ghana and the International Monetary Fund (IMF) have agreed on a strategy for the country’s economic recovery.

 The strategy includes a preliminary fiscal adjustment path and financing requirement to help Ghana navigate through the current economic difficulties. 

Mr Ofori-Atta, who delivered the 2023 budget statement and economic policy to Parliament on Thursday, said the strategy would be in line with Government’s Post-COVID-19 Programme for Economic Growth (PC-PEG). 

“The PC-PEG is Government’s blueprint to restore macroeconomic stability, promote debt sustainability, sustain economic recovery and support structural reforms,” the Finance Minister said.  

“We are now embarking on a journey to fundamentally reposition our economy with the PC-PEG, to be supported by the IMF, World Bank and other friendly sovereigns and the private sector (domestic and international), as our blueprint.” The Minister emphasised. 

He, however, asked Ghanaians to brace themselves for the costs associated with the economic and structural reforms and make some sacrifices to support the Government. 

Mr Ofori-Atta said: “We are mindful that it will require broad-based contributions and sacrifices. There will be costs to the fiscal adjustments we intend to make in the coming years to sustain our stability, recovery and eventual transformation.” 

On the part of the Government, the Finance Minister pledged that there would be fiscal discipline and said that “every pesewa that we ask the Ghanaian people and businesses operating in Ghana to contribute will be spent well”.
He assured of Government’s strong commitment to secure the IMF loan support programme “very soon”, which he said would help the country in its post-COVID recovery efforts. 

“Our disagreements notwithstanding, what should never be in doubt, especially in the eyes and ears of the general public, is our common desire to serve the Republic,” the Mr Ofori-Atta said.

Ghana officially started engaging the IMF in September 2022 for a loan support programme, which is aimed at establishing a macro-fiscal path that ensures debt sustainability and macroeconomic stability underpinned by key structural reforms and social protection.