The International Monetary Fund (IMF) has warned that the economic gains achieved so far under the Extended Credit Facility (ECF) programme are fragile and will require sustained efforts to consolidate.
The IMF’s caution comes as Ghana attempts to implement measures aimed at restoring macroeconomic stability and addressing fiscal challenges.
The IMF explained that, while some progress has been made in stabilising Ghana’s economy, the gains are vulnerable to external shocks, policy implementation delays, and lingering structural weaknesses.
In its report on Ghana, the Fund stated that maintaining fiscal discipline, improving revenue mobilisation, and ensuring timely implementation of reforms will be critical to solidifying the recovery process.
“While encouraging continued financial system recapitalization and tackling financial sector legacy issues remain important, further reducing inflation and rebuilding international reserves hinge on maintaining a prudently tight monetary policy stance and improving foreign exchange market operations.
“Finally, additional efforts to protect the vulnerable from the impact of adjustment and reforms are warranted to foster an inclusive recovery”.
The IMF also expressed concern about delays in securing key funding, particularly from donor programmes such as the World Bank, warning that they could jeopardise the country’s efforts to stabilise its fiscal landscape.
It advised the government to stay focused on the reform agenda.
The IMF emphasised that any deviation could reverse the progress made.
“There have also been delays in the reforms needed to unlock access to budget and other types of support from key development partners, in part due to parliamentary gridlock. The political debate has been dominated by the December 7, 2024, general elections.
“Policy statements from leading presidential contenders highlight tackling debt risks, increasing employment, and addressing high costs of living as the main priorities, consistent with the objectives of the current ECF-supported programme”.
By: Rainbowradioonline.com/Ghana
