The team from the International Monetary Fund (IMF) says it has observed that the global economic shock caused by the war in Ukraine is hitting Ghana.
According to the IMF, this is happening at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for maneuver.
The IMF made this conclusion following its visit to Ghana after President Nana Addo Dankwa Akufo-Addo called the Managing Director, Kristalina Georgieva, seeking an extended credit facility for the country.
The team led by Carlo Sdralevich arrived in Ghana on Tuesday, July 5, and started engagements the following day.
The team met Vice President Dr Mahamudu Bawumia, staff of the Ministry of Finance, and the sector minister, members of the Finance Committee of Parliament, civil society organisations, among others.
The engagements were basically to gather data in order to assess the facility to support Ghana.
At the conclusion of the mission, Mr. Sdralevich admitted that the Ukraine-Russia war is having a toll on Ghana’s economic growth.
“Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment. The fiscal and debt situation has severely worsened following the COVID-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.
“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for maneuver. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.”
Mr Sdralevich expressed commitment “to support Ghana at this difficult time, consistent with the IMF’s policies”.
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