Ghana’s economic recovery will depend heavily on stabilizing the current power crises, says the IMF in its latest staff report.
The report released on January 19, 2016 noted that the current economic crises facing Ghana could also improve, when prices of Gold and Crude oil pick up.
The staff report was submitted to the IMF Board ahead of Ghana’s second review under the program.
The IMF is also worried about government’s rising public debt, saying there might be the need to implement tough measures to fast track the fiscal consolidation program.
In a letter to the Managing Director of the IMF, Christian Lagarde – which was captured in the staff report – Government admitted that this year will be tough because of current developments on the international market.
The staff in its report also called for the policy rate to be increased from the current 26%. The Bretton Woods institution believes that will check rising inflation.
According to the Ghana Statistical Service, inflation rate for December was 17.7 percent which the IMF says is higher than what they envisaged under the program.
Source-myjoyonline.com
