IMF Staff Concludes Visit to Ghana

IMF News, July 13, 2022

Source details

Press Release No. 22/256
Date: July 13, 2022
Mission dates: July 6-13, 2022
Team leader: Carlo Sdralevich
Purpose: to assess the current economic situation and discuss the broad lines of the government’s Enhanced Domestic Program that could be supported by an IMF lending arrangement.
Meetings held with:
- H.E. Vice President Bawumia
- Finance Minister Ofori-Atta
- Governor Addison of the Bank of Ghana
- Parliament’s Finance Committee
- Civil society organizations
- Development partners, including UNICEF and the World Bank (to engage on social spending)
Administrative note: “This mission will not result in a Board discussion.”

“Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment.”
Fiscal and debt situation: “has severely worsened following the COVID-19 pandemic.”
Market and investor reaction: “investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.”
External shock: “the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for maneuver.”
Observed economic consequences: “slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.”

IMF staff held initial discussions on “a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability.”
Near-term policy priorities identified:
- “improving fiscal balances in a sustainable way while protecting the vulnerable and poor”
- “ensuring credibility of the monetary policy and exchange rate regimes”
- “preserving financial sector stability”
- “designing reforms to enhance growth, create jobs, and strengthen governance”
Engagement approach: “assessing the economic situation and identifying policy priorities in the near term” and discussions on the formulation of the authorities’ Enhanced Domestic Program that could be supported by an IMF arrangement “and with broad stakeholders’ consultation.”

“IMF staff will continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholders’ consultation.”
“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.”
Appreciation: “Staff express their gratitude to the authorities, civil society, and development partners for their constructive engagement and support during the mission.”

Source: IMF Staff Concludes Visit to Ghana (Press Release No. 22/256, July 13, 2022).