Excessive spending in 2020 partly to blame for economic woes - IMF boss

Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), has advanced that strong macroeconomic indicators are the best way to grow an economy.

Georgieva, who completed an official visit to Ghana on March 18, 2024, stressed that building a resilient economy rested on sound policy and institutions.

Asked about the impact of external factors on an economy in an interview on Accra-based Citi FM, she noted that COVID impacted economies globally but that in the case of Ghana, excessive spending in 2020 was a key factor.

She said aside from COVID, Ghana's woes were also a result of "excessive spending during an election period," referring to Ghana's 2020 elections.

"Learn lessons from the past, apply them for the future," she emphasized.

The Ghanaian economy has been a topical issue in recent years following a downturn occasioned by galloping inflation, a depreciating currency, and a general decline in the quality of life coupled with a high cost of living.

The government has serially blamed the aftermath of COVID-19 and the Russia-Ukraine war before submitting to a US$3 billion IMF loan last year, of which US$600 million as tranche one has been credited to the government account.

IMF Managing Director, Kristalina Georgieva has identified Government’s decision to overspend in the 2020 election year part of the reasons for the economic difficulties.

Speaking in an interview with @benkoku on the #PointofView, Managing Director of the IMF, Kristalina… pic.twitter.com/wE118b54RQ

— CITI FM 97.3 (@Citi973) March 19, 2024