IMF Warns That Ghana's Economic Recovery Under ECF Programme Still Very Fragile

• The International Monetary Fund has issued a warning to Ghana concerning the country's economic recovery
• In a report on Ghana, it noted that the country has to sustain efforts to consolidate the fragile economic gains
• The warning follows the country’s push to implement critical reforms to restore macroeconomic stability and address fiscal challenges

The International Monetary Fund (IMF) has warned that Ghana’s economic gains under the Extended Credit Facility (ECF) programme remain fragile and must be consolidated through sustained efforts.

The warning follows the country’s push to implement critical reforms to restore macroeconomic stability and address fiscal challenges.

The IMF noted that while some progress has been made in stabilising Ghana’s economy, the gains are prone to external shocks, delays in policy implementation and unresolved structural weaknesses.

The IMF said Ghana ought to maintain fiscal discipline, improve revenue mobilisation, and ensure the execution of timely reforms to solidify its recovery process.

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It also advised that Ghana build a prudently tight monetary policy stance and improve its foreign exchange market operations to help reduce inflation and rebuild international reserves.

Meanwhile, the Fund advocated for creating social interventions to protect the vulnerable from the impact of adjustment and reforms to ensure an inclusive economic recovery.

The IMF warned that delays securing key funding from the World Bank and other donor programmes could undermine the country’s efforts to stabilise its fiscal landscape.

The Fund said timely disbursement of funds and strict adherence to policy measures to address the country’s debt vulnerabilities and improve economic resilience would help sustain Ghana’s economic reform programme.

The Fund said Ghana must remain committed to its reform agenda and ensure strong collaborations between policymakers, parliament and stakeholders to ensure the programme’s success.

IMF approves third review of ECF

YEN.com.gh reported that the IMF has approved the third review of Ghana's Extended Credit Facility, paving the way for an approximated $360 million disbursement.

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The IMF has also lauded Ghana's performance under the programme, calling it generally satisfactory.

Further, the Bretton Woods institution also noted that the government’s reform efforts were yielding positive results.

Source: YEN.com.gh