Economist Dr. Theo Acheampong has commended the government for its commitment to reducing spending in the Mid-year budget review, which was influenced by the International Monetary Fund (IMF) program.
Dr. Acheampong noted that without the presence of the IMF, especially in an election year, the government would have been more inclined to spend excessively. This shift towards fiscal responsibility is seen as a positive development by the economist.
During an appearance on Joy News’ PM Express, Dr. Acheampong highlighted the improvements in macroeconomic stability but emphasized the need for the recovery to address issues affecting individuals at a micro level, such as the cost of living. He also mentioned that the Mid-year budget and the upcoming November budget aim to steer the economy towards growth through investments in infrastructure like roads and housing.
One noteworthy aspect of the budget review is that the government is not requesting additional funds, which Dr. Acheampong views as a positive departure from previous supplementary budgets. The emphasis is on efficiently utilizing resources within the set parameters.
The IMF recently approved the second review of Ghana’s $3 billion loan program, leading to the immediate disbursement of around $360 million. This approval followed Ghana’s agreement with its official creditor committee, unlocking the second tranche of the loan program. With this new disbursement, the total IMF support for Ghana’s economic recovery amounts to $1.56 billion.
IMF Deputy Managing Director Kenji Okamu acknowledged Ghana’s strong performance under the program, stating that the authorities’ strategy to restore macroeconomic stability and reduce debt vulnerabilities is showing clear signs of success.
Overall, the outlook for Ghana’s economy appears relatively positive, with a focus on sustainable growth and financial stability. The ongoing partnership with the IMF is seen as a crucial pillar in Ghana’s economic recovery efforts.
