IMF Boss Links Ghana's Economic Crisis To Excessive Spending In 2020: “Learn Lessons From The Past”

IMF Boss Links Ghana's Economic Crisis To Excessive Spending In 2020: “Learn Lessons From The Past”

  • The Managing Director of the International Monetary Fund has Ghana's ongoing economic challenges stem not only from the COVID-19 pandemic
  • Kristalina Georgieva has linked Ghana's economic woes to excessive spending during election periods
  • Ghana is currently receiving $3 billion from the fund to support the ailing economy after a couple of distressed years

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has linked Ghana's economic challenges to excessive spending during elections.

Georgieva said the impact of the COVID-19 pandemic in 2020 could have been better managed without excessive spending.

Kristalina Georgieva speaks on Ghana economy and overspending
Kristalina Georgieva (L)
Source: UGC

Speaking to Citi TV, she said Ghana needed to learn from past experiences.

Georgieva also said Ghana needed to work towards robust economic fundamentals.

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"Nothing is more effective than strong macroeconomic and financial performance in a country."

In addition, she emphasised the of transparent governance to foster economic growth.

Ghana started restructuring its public debt in December 2022 to qualify for the $3 billion support from the IMF.

The country received $600 million when it agreed to the IMF programme in May 2023.

Speaking during a meeting with Georgieva at the Jubilee House over the weekend, President Akufo-Addo said the programme was satisfactory.

He believes the IMF support has contributed to a noticeable turnaround in Ghana’s economy.

Moving forward, President Akufo-Addo said there was a need to strike a balance between the needs of Ghanaians while adhering to the IMF requirements ahead of the 2024 election.

Claim economy has turned a corner reported that the then Finance Minister Ken Ofori-Atta used the 2023 Mid-Year Budget Review to declare that Ghana's economy was improving by saying, “we have turned the corner.”

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Akufo-Addo says $3 billion IMF bailout yielding positive results for Ghana

But this did not sit well with the Minority in Parliament, which said the Akufo-Addo administration worsened the economy in 2023 instead.

Speaking after the budget reading, Minority Leader Cassiel Ato Forson said, "Let our minister not say anywhere that he has turned the corner."

“Unfortunately, the evidence and the numbers before us shows that he has rather deepened our woes.”

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