Dr. Leandro Medina, the International Monetary Fund’s (IMF) resident representative in Ghana, has praised the country’s determined efforts to establish economic stability, stating that while Ghana has not arrived, it is unquestionably on the right track.
During an appearance on the Citi Breakfast Show on Tuesday, January 30, Dr. Medina informed presenter Bernard Avle that Ghanaian authorities are actively striving to resuscitate the economy. He remarked that the indicators clearly indicate the government’s commitment and activities.
“Despite a very difficult external environment, macro has been quite resilient, when you look at growth, we had to upgrade our projections because growth in 2023 has been more resilient, Inflation has been on a decreasing path, reserves have been increasing, and exchange volatility has also decreased.”
“It is extremely important to know where we are and where we intend to be. By no means are we there, [but] when we see early signs of stability emerging, this means that for example, inflation is down from 54 to 23, 23 is still high for inflation and way above the BoG target but we are getting there, we are on the right track.
“The critical reforms have been made, critical actions by authorities have been taken and we are on the right path. Are we there? not yet, there are key objectives of this programme, that is to restore macroeconomic stability, secure sustainability, and lay the foundations for more durable and higher and more inclusive growth, we are not there yet but we are on the right path.”
Dr. Medina noted several good signs, including a decreased trend in inflation and a large increase in the Bank of Ghana’s reserves, indicating a laudable effort to strengthen the country’s financial position.
Dr. Medina expanded on the economic measures implemented, stating that despite continually high inflation, there is a visible upward trend.
In December 2023, inflation fell to 23.2 percent, down from a record high of 54 percent in December 2022, suggesting a major improvement in the economic environment.
Dr. Medina noted that Ghanaian authorities’ partnership with foreign financial institutions in navigating economic issues and implementing sensible fiscal policies is producing great benefits.
He also stated that the good evaluation gives a glimmer of hope for Ghana’s economic future, reaffirming the concept that current efforts are guiding the country toward a path of sustained prosperity and stability.
