Ghana is at risk of not passing the fourth IMF program review in April 2025 due to missed key performance indicators, particularly regarding inflation and fiscal targets. Experts Joe Jackson and Vish Ashiagbor emphasize the urgency for government action and discussions with the IMF for possible program extensions.
The risk of Ghana failing to pass the fourth review of its IMF program due in April 2025 has risen, as noted by Joe Jackson, Chief Executive of Delax Finance, and Vish Ashiagbor, Senior Country Partner at PWC Ghana. Following Finance Minister Dr. Ato Forson’s recent disclosures regarding missed key performance indicators, concerns have intensified over the country’s ability to meet the IMF’s expectations. Without a waiver for the unmet targets, Ghana faces significant challenges for program compliance.
Dr. Forson’s presentation of the 2025 Budget highlighted that critical structural benchmarks expected to be met by December 2024 have not been achieved. Alarmingly, he reported an inflation rate of 23.8% in December 2024, considerably higher than both the budget target of 15% and the IMF’s target of 18%. During this period, the primary balance worsened from a deficit of 0.2% of GDP in 2023 to a deficit of 3.9% in 2024, creating doubts over fiscal management capabilities.
Concerns surrounding Ghana’s economic outlook were echoed by Mr. Ashiagbor on PM EXPRESS. He warned of potential adverse effects on the Ghanaian cedi amidst negative investor sentiment due to disappointing fiscal data. He urged the government to respond efficiently to these urgent fiscal issues, calling for innovative solutions to stabilize the economic situation.
Moreover, Jackson insisted that the government ought to initiate discussions for an extension of the IMF program, given the inability to achieve essential targets. He emphasized the necessity for prompt action to mitigate economic deterioration and ensure continued support from international financial institutions.
Ghana’s risk of failing the upcoming IMF program review has emerged as a critical issue, underscored by missed key performance indicators, especially concerning inflation and fiscal balance. Experts have highlighted the need for urgent government intervention and discussions for an IMF program extension to stabilize the economy and regain investor confidence. The situation necessitates immediate and innovative responses to prevent further economic challenges as April 2025 approaches.
Original Source: www.myjoyonline.com
