Ghana has been warned by the International Monetary Fund (IMF) that further efforts are necessary to solidify the economic gains made thus far under the Extended Credit Facility (ECF) program since they are still brittle.

As the nation continues to carry out important changes meant to resolve fiscal issues and restore macroeconomic stability, this caution is issued.

Ghana's economy has stabilized to some extent, but the gains are susceptible to external shocks, policy implementation delays, and persistent structural vulnerabilities, according to the IMF.

In its assessment on Ghana, the Fund noted that securing the recovery process will require preserving budgetary restraint, enhancing revenue mobilization, and making sure reforms are implemented on schedule.

“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 added that the nation's attempts to improve its fiscal situation may be hampered by delays in obtaining crucial assistance, especially from donor programs like the World Bank.

In order to address growing debt risks and enhance economic resilience, Ghana's economic reform program, supported by the ECF, depends on prompt cash disbursement and rigorous adherence to policy measures.

The IMF warned that if the government veered from its reform goal, the gains made may be undone. In order to guarantee the program's success and open the door for long-term economic stability and sustainable growth, it urged close cooperation between stakeholders, lawmakers, and the Parliament.

“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”.

KA

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