President John Dramani Mahama is urging the incoming government to continue with the deal with the International Monitory Fund, IMF, for the stabilization of the country’s economy.
Speaking at the parliament house today on his last state of the nation address, he said the economic situation of the country led to the government’s decision to partake in the program which has seen positive effects on the nation.
In an address to the speaker of the house, he said he looks forward to the incoming government’s continuation of the progam to 2017 which marks the end of the three years agreed on with the IMF.
Ghana in the year 2014 joined the IMF for better conditions in stabilizing the country’s economic situation under the NDC government.
The IMF in support gave the country $918 million.
Information has it that, the incoming government, NPP might terminate the appointment with the IMF. Some economist have also projected the incure of debt should the program be cancelled.
In about a 40 minutes speech by the president, he urged the new government to continue with the IMF program till it end when the outgoing has handed over power.
Read a copy of his statement on the Economy;
We inherited an economy that was running a high deficit, with increasing inflation and interest rates. It was also characterized by a rapidly depreciating currency. This unstable macro environment created an unfavourable investment environment for both indigenous and foreign capital. Our forum at Senchi was an attempt to forge a consensus for a homegrown fiscal consolidation programme. The Senchi outcome eventually became the basis for the IMF Extended Credit Facility (ECF) programme we are implementing.
The ECF programme has resulted in an improved macro environment which is seeing a steady decline in inflation and interest rates. A new public debt management strategy is also seeing a steady decline in Public sector debt, estimated to have dropped from nearly 72% to below 65%. The currency has also enjoyed relative stability, depreciating at just above 4% this year.
While the deficit target will be missed this year on account of inability to meet revenue targets, it is important for us to continue to pursue fiscal consolidation in the 3rd and final year of the programme. Multiple causes are responsible for our inability to meet the target. Reduced lifting from the Jubilee field on account of the turret bearing problems, non-realization of some expected non-tax revenue such as the sale of electro-magnetic spectrum, reduced cocoa export revenue and higher than expected election-related expenditures. In spite of the breach of the fiscal deficit target, expenditure was lower than programmed and thus the approved appropriation for 2016 was not exceeded.
Ghana’s economy is still the second largest in West Africa with a GDP of almost $39 billion. Ghana has also moved up thirteen (13) places in the ease of doing business index and is currently considered number one on the World Bank index.
Source: Topfmonline.com/Maame Yaa Emefa Coffie