The International Monetary Fund(IMF) Executive board indicates in its 2021 Article IV with Ghana describing Ghana as trying to improve her economic outlook even though the debt to GDP is high, 79% to Gross Domestic Products(GDP). Nonetheless, it reiterated that there are other risks Ghana is experiencing economically many of the causes were as a result of the impact of coronavirus.

Ghana’s debt stock is increasing day by day, this means Ghana’s is vulnerable to more debts as was captured in IMF statement, however, if the loans and bonds are put into prudent uses, it will help to pay back and bring back the economy on a sound footing. The IMF also commended Ghana for being able to manage the impact of corona virus vis-a-vis the economy.

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Also in the Article, Ghana’s growth reduced from 6.5% in 2019 to 0.4% in 2020 with accompanying increases in food prices and poverty.However, Growth is expected by the end 2021 to a margin of 4.7%, Ghana’s cedis remained relatively stable to the US Dollar partly due to Bank of Ghana interventions and foreign reserves at 3.2 months of imports.

“The pandemic had a severe impact on economic activity. Growth slowed to 0.4 percent in 2020 from 6.5 percent in 2019, food prices spiked, and poverty increased”.

“Public debt rose to 79 percent of GDP. The current account deficit widened slightly to 3.1 percent of GDP as the decline in oil exports was partially offset by higher gold prices, resilient remittances, and weaker imports. The Ghanaian Cedi remained stable against the US dollar, partly due to central bank intervention, and gross international reserves remained at 3.2 months of imports. External and domestic financing conditions tightened considerably at the start of the pandemic, but have improved since, and Ghana successfully returned to international capital markets for a US$3 billion Eurobond issuance in March 2021,” the statement said.

“Directors welcomed the fiscal adjustment envisaged in the 2021 budget. They stressed that fiscal consolidation is needed to address debt sustainability and rollover risks, as Ghana continues to be classified at high risk of debt distress. To protect the most vulnerable, considerations could be given to more progressive revenue measures and a faster return to the pre-pandemic level of spending, with a shift towards social, health, and development spending. Directors also encouraged the timely completion of the planned audit of COVID‑19 emergency spending and new expenditure arrears,” the statement said.


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