Despite a turn towards the International Monetary Fund, economist Dr. Adu Owusu Sarkodie has urged the government to still work towards a plan that will improve Ghana’s economic fundamentals.
He stressed that the fiscal consolidation that Ghana could attain under an IMF programme will not spur economic development.
“IMF will not grow your GDP. IMF will not industrialise your economy. The IMF is only giving you stability. Whatever the government does with the stability is up to the government.”
“If you don’t want to mess up, when they give you stability, try and grow your economy and manage yourself to the extent that you have been able to develop your nation,” Dr. Sarkodie said.
As Ghana turns to the IMF, it has a total public debt stock of GH¢391.9 billion, as of the end of the first quarter of 2022.
The cedi has also weakened 22 percent against the dollar this year, making it the worst-performing among African currencies.
The government has said its return to the IMF is to seek support for its economic programme.
Cabinet gave its support for the decision at a meeting on Thursday, following a phone conversation between President Akufo-Addo and IMF Managing Director Kristalina Georgieva.
The aim is to provide a balance of payment support as part of efforts to quicken Ghana’s economic recovery following the Covid-19 pandemic and the Russian invasion of Ukraine.
Ghana’s last programme with the IMF, in 2015, culminated in some economic gains after the exit in 2019.
Trade and budget deficits were narrowed, and the pace of economic growth shot up from 2.2 percent in 2015 to over 8 percent in 2019.
The inflation rate also fell to single digits from about 19 percent.