Ghana may not pass its fourth IMF programme review scheduled for April 2025, as concerns arise over missed key indicators and poor fiscal performance. Finance Minister Dr. Ato Forson revealed significant slippages in structural benchmarks and inflation targets, prompting calls for urgent governmental action and discussions for a potential IMF programme extension.
The Chief Executive of Delax Finance, Mr. Joe Jackson, and Senior Country Partner of PWC Ghana, Mr. Vish Ashiagbor, have expressed concerns that Ghana may fail to pass the forthcoming fourth review of its IMF programme. Their statements come in light of revelations from Finance Minister Dr. Ato Forson, indicating that Ghana has missed several crucial indicators required under the IMF programme, with significant deadlines approaching in April 2025.
Dr. Forson disclosed that Ghana has likely failed to meet key performance indicators necessary for the impending review, particularly structural benchmarks that were due by the end of December 2024. He highlighted a notable shortfall in the end-of-year inflation target, which was documented at 23.8 percent—well above both the budgeted target of 15 percent and the IMF’s central target of 18 percent. This failure has raised pressing concerns regarding the government’s compliance with mandated reform commitments.
Further exacerbating the situation, the primary balance, which is a crucial fiscal indicator for the IMF programme, deteriorated significantly—reflecting a shift from a deficit of 0.2 percent of GDP in 2023 to a deficit of 3.9 percent in 2024. This shift showcases a seemingly extensive failure to meet fiscal management expectations at such a critical time.
While discussing the potential implications on PM EXPRESS, Mr. Ashiagbor noted that these issues, if not promptly addressed, could severely impact the stability of the Ghana cedi, as investor confidence has already begun to wane in response to the unfavorable fiscal data. He urged for immediate measures to rectify these concerns, emphasizing the need for compelling and innovative strategies.
In a call to action, Mr. Jackson stated that the developing circumstances should prompt the government to initiate discussions for an extension of the IMF programme, given the evident difficulty in meeting established key targets. Addressing these issues proactively is paramount to restoring confidence and ensuring economic stability going forward.
In conclusion, Ghana faces significant challenges in preparing for the upcoming fourth review of the IMF programme due in April 2025. The country’s failure to meet critical performance indicators, coupled with deteriorating fiscal metrics, suggests a potential inability to comply with the IMF’s requirements. Immediate action is essential to rectify these issues and maintain investor confidence in the Ghanaian economy.
Original Source: www.myjoyonline.com
