The current dismal economic conditions in Ghana have been linked by Kristalina Georgina, director of the International Monetary Fund (IMF), to shocks from the COVID outbreak and the Russian-Ukrainian war.
She asserts that the country’s problems are not the result of “bad policies” allegedly carried out by the administration, but rather shocks from the two unanticipated causes that have had a significant influence on the economy.
“Like everybody on this planet, you have been hurt by exogenous shocks. First the pandemic, then Russia-Ukraine. And then we need to realise that this is not because of bad policies in the country, but because of this combination of shocks,” she added.
The IMF Director continued by saying that the IMF should help Ghana, a strong nation in the sub-region, to recover because Ghana’s strength benefits its neighbours.
“And therefore, we have to support (Ghana) because you’re a member. You’re a strong country, you have fantastic people, but also we have to support Ghana because your strength contributes to the strength of your neighbours. It contributes to a stronger world,” she told journalists at the ongoing Africa Climate Change Adaptation Summit.
She went on to say that the IMF is committed to reaching an agreement with Ghana before the end of this year when discussing the upcoming IMF contract with Ghana.
“I am very determined for us to indeed reach an agreement by the end of this year,” she quipped.
To aid in addressing some of its immediate economic issues, Ghana is attempting to raise about $3 billion for the Balance of Payments IMF support program.
In July 2022, the government started speaking with the Bretton Woods organization, breaking the promise made by President Akufo-administration Addo’s not to request a financial program from the IMF.
Ghana’s economy was recognized as one of the fastest expanding in the world before to the epidemic and later the Russia-Ukraine war.
At the end of 2021, a slow sign of recovery from the pandemic’s effects was derailed by another unanticipated event: Russia’s invasion of Ukraine. This war has severely damaged economies around the world, with many global currencies experiencing unheard-of depreciations against the US Dollar.
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