Ghana’s economic stability path will be painful –IMF Boss

The IMF has indicated that Ghana’s journey towards economic stability will be challenging, but remains hopeful that the country will emerge stronger from its current difficulties. The Fund has advised Ghanaians to manage their expectations and continue to make sacrifices as the country implements its US$3 billion loan-support programme. In response to the economic impact of the COVID-19 pandemic, the government introduced new taxes and levies, which faced backlash from citizens. Following discussions with the IMF, the government decided to suspend the 15 per cent VAT on residential electricity consumption and emissions levy for further review.

During her visit to Ghana, IMF Managing Director, Ms Kristalina Georgieva, urged Ghanaians to accept the necessary reforms being implemented by the government, drawing on her own country’s experience with economic collapse in the 1990s. She emphasized the importance of sound economic fundamentals, governance, and investment in education and infrastructure to ensure a resilient economy and an improved standard of living for Ghanaians. The IMF-supported programme aims to restore macroeconomic stability, debt sustainability, and promote inclusive growth in Ghana.