Kristalina Georgina, Director of the International Monetary Fund (IMF), has attributed Ghana’s current dismal economic conditions to shocks from the Covid epidemic and the Russian-Ukraine war.
According to her, shocks from the two unforeseeable causes have had a significant influence on the economy and are to blame for the country’s troubles, rather than “poor policies” allegedly adopted by the government.
“Like everybody on this planet you have been hurt by exogenous shocks. First the pandemic, then Russia-Ukraine. And then the we need to realise is not because of bad policies in the country, but because of this combination of shocks,” she added.
The IMF Director stated that Ghana, as a strong country in the sub-region, should be helped by the IMF to recover because Ghana’s strength benefits neighbouring countries. She also that noted that the IMF is determined to have a deal with Ghana by the end of this year.
Ghana is attempting to raise $3 billion under the IMF’s Balance of Payments support program in order to address some of its immediate economic issues.
In July 2022, the government initiated talks with the Bretton Woods organization, reversing President Akufo-commitment Addo’s administration’s not to seek a financial program from the IMF.
Prior to the epidemic and the subsequent Russia-Ukraine war, Ghana’s economy was regarded as one of the world’s fastest growing.
At the end of 2021, a gradual sign of recovery from the effects of the pandemic was hit by another unforeseen setback, as a result of Russia’s invasion of Ukraine – a war that has significantly ravaged economies around the world, with many global currencies experiencing unprecedented depreciation against the US Dollar.
