Head of the IMF's African Department, Abebe Aemro Selassie
The head of the IMF's African Department, Abebe Aemro Selassie, has urged the Ghanaian government to keep fiscal deficits modest, particularly during the election cycle, to prevent the economic challenges faced in previous election years.
At a press conference during the IMF/World Bank Meeting in Washington, he said recent economic reforms in Ghana are beginning to yield positive results, as seen in impressive growth figures.
"Maintaining modest levels of fiscal deficits and avoiding the pitfalls Ghana has faced in past election cycles will be critical to ensuring a healthy macroeconomic situation going forward," he emphasised.
"These reforms are starting to bear fruit, and that's reflected in the growth numbers we're seeing. Moving forward, it is crucial to strike a balance between addressing Ghana's development spending needs and maintaining debt sustainability," he explained.
Selassie emphasised the importance of securing favorable terms with non-Eurobond commercial creditors as part of Ghana's debt restructuring efforts.
He pointed out that a significant portion of Ghana's debt must be renegotiated to align with the IMF program's parameters.
He urged the government to remain steadfast in its negotiations to secure the best possible outcomes for its citizens.
"There is still a considerable amount of debt that needs to be agreed upon with non-Eurobond commercial creditors in accordance with the program's parameters. We hope for progress in the coming weeks and months. The government must stay strong to ensure it achieves the best deal for the people of Ghana," he stated.
Looking ahead, Selassie projected Ghana's growth rate for 2024 to be around 4.0%, reflecting the positive impact of ongoing economic reforms.
ID/EB
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