IMF Says Ghana Will Rely More On Borrowing

International Monetary Fund (IMF) is predicting a gloomy picture about Ghana's economy although it has been helping the country out of its economic mess.

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IMF Mission chief for Ghana, Joël Toujas-Bernaté,
IMF Mission chief for Ghana, Joël Toujas-Bernaté,

According to the IMF Mission chief for Ghana, Joël Toujas-Bernaté, large decline in commodity prices, gold, oil and cocoa will mean lower exports, which means that there will be lower revenues, and makes the advancement in the fiscal and external balances more difficult.

IMF Mission chief for Ghana, Joël Toujas-Bernaté,
IMF Mission chief for Ghana, Joël Toujas-Bernaté,

Joël Toujas-Bernaté who has been speaking in Washington enumerated that the 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 micro economic management to be able to adapt to this changing and more difficult conditions,” he said.

Indeed, Ghana’s economy took a downturn after 2012 and since government was struggling to deal with the situation, it turned to the IMF for assistance thereby securing an extended credit facility of over 900 million dollars.

This however gave some hope to government with the Finance Minister Seth Terkper expressing optimism about Ghana’s economic turnaround.

To Seth Tekper, Ghana has done well so far with the plan but the IMF Mission chief for Ghana Joël Toujas-Bernaté said current global economic trends will not favour Ghana’s efforts to bounce back on its feet.

Source: Newsghana.com.gh

 

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