Ghana’s net international reserves are expected to end in 2023 at approximately three weeks of import cover (0.8 months), a 202 International Monetary Fund Regional Economic Outlook Report (Sub-Saharan Africa) has revealed.
The report explained that the country’s reserves will increase to about 1.7 months of import cover in 2024.
It added that only Zimbabwe (0.2 months), South Sudan (0.5 months), and Ethiopia (0.6 months) in Sub-Saharan Africa are projected to have lower import cover than Ghana.
The IMF report contradicts Bank of Ghana’s Summary of Economic and Financial Data.
BoG’s report had estimated Ghana’s reserves for 2023 at 2.7 months of import cover.
It further indicates it stood at a little above two weeks (0.6 months) of import cover in 2022.
According to the IMF, if foreign inflows stop, Ghana’s economy will suffer significantly because the country’s reserves for balance-of-payment transactions are limited.
The report has also predicted that growth in sub-Saharan Africa will decline to 3.6 percent this year.
It added that the funding squeeze will also impact the region’s longer-term outlook and a shortage of funding may force countries to reduce resources for critical development sectors like health, education, and infrastructure, weakening the region’s growth potential.
The International Monetary Fund Regional Economic Outlook Report (Sub-Saharan Africa), discuss recent economic developments and prospects for countries in various regions.
The reports also address economic policy developments that have affected economic performance in the regions, and discuss key challenges faced by policymakers.
They further address regional policy developments and challenges, and provide country-specific data and analysis, including through analytical pieces on issues of interest to a particular region.
By: Rainbowradioonline.com/Ghana
