Ghana has been urged to build stronger fiscal and economic buffers to withstand potential global shocks as it prepares to exit its programme with the International Monetary Fund, amid growing uncertainty in the global economy.
The Member of Parliament for New Juaben North, Nana Osei-Adjei, made the call on the sidelines of the IMF-World Bank Spring Meetings in Washington, cautioning that recent improvements in Ghana’s growth outlook should not lead to complacency.
Speaking to journalists, the lawmaker, who also serves on Parliament’s Public Accounts Committee, acknowledged the IMF’s upward revision of Ghana’s growth projections but stressed that the broader global environment remains fragile.
He noted that while Ghana’s outlook has improved, global growth forecasts have been downgraded due to rising geopolitical tensions, including the ongoing conflict in the Middle East, creating a volatile backdrop for economic recovery.
“If this war continues it’s going to have a big effect on the economy of the world,” he said.
Mr Osei-Adjei warned that such developments highlight the risks facing open economies like Ghana, particularly in areas such as commodity prices, inflation and access to international financing.
He drew parallels with the economic disruption caused by the COVID-19 pandemic, when Ghana’s economy experienced significant strain.
“You see, when COVID struck, our economy just came to a standstill and things were very difficult for us,” he said.
According to him, the experience underscores the importance of building fiscal buffers to improve resilience against future shocks, especially as the country prepares to operate without the safety net of an IMF-supported programme.
“We should as well build buffers so that the economy will be resilient in case the global outlook changes,” he added.
Ghana is expected to conclude its IMF programme in the coming months, subject to meeting key reform targets. The programme, which began in 2023, has underpinned efforts to restore macroeconomic stability through fiscal consolidation, monetary tightening and structural reforms.
Mr Osei-Adjei cautioned that the end of the programme should not signal a relaxation of discipline, urging authorities to sustain reforms to preserve gains in inflation control and exchange rate stability.
He emphasised that maintaining prudent economic management would be critical as Ghana re-engages more fully with global financial markets.
The Ghanaian economy has faced significant challenges in recent years, including high inflation, currency depreciation and debt restructuring pressures, prompting the government to seek IMF support.
Although recent indicators point to gradual recovery, risks remain elevated, particularly in light of global uncertainties and domestic financing constraints.
Mr Osei-Adjei said policymakers must adopt a forward-looking approach to economic management, prioritising resilience over short-term growth gains.
“Managers of the economy should build buffers for the economy to be resilient,” he said.
Discussions at the IMF-World Bank Spring Meetings have centred on global economic volatility, debt sustainability and the need for developing economies to strengthen safeguards against external shocks—issues that remain central to Ghana’s economic outlook as it prepares for life after IMF support.
Source:
www.graphic.com.gh