Whereas Ghana’s Finance Minister Seth Terkper is quite optimistic about Ghana’s economic turnaround, the International Monetary Fund (IMF) which is helping the country out of its current economic mess is now sounding gloomy about the future.
Ghana’s economy took a downturn after 2012 and since government was struggling to deal with the situation, it turned to the IMF for help and secured an extended credit facility of over 900 million dollars.
Ghana has done well so far with the plan, but the IMF Mission chief for Ghana Joël Toujas-Bernaté, who has been speaking in Washington said current global economic trends will not favour the country’s efforts to bounce back.
He explained that, “large decline in commodity prices, gold, oil and cocoa will mean lower exports” which means that there will be lower revenues “so making the advancement in the fiscal and external balances more difficult.
Joël Toujas-Bernaté also added that such trend will make Ghana rely more on borrowing which will not auger well the country.
“…this means there would be increased cost of borrowing. So it will require very agile microeconomic management to be able to adapt to this changing and more difficult conditions,” he added.