Ghana would work to reduce its budget deficits and accumulated debts while implementing economic reforms backed by the International Monetary Fund (IMF), Finance Minister Ken Ofori-Atta has said.
In a press briefing late Sunday to update Ghanaians on the state of affairs of the economy, Ofori-Atta said these targets were part of the post-COVID-19 Program for Economic Growth (PC-PEG) supported by the three-year Extended Credit Facility arrangement with the IMF.
“Over the medium term, the IMF-backed PC-PEG seeks to promote a credible fiscal consolidation program, anchored by strong domestic revenue mobilization and high spending efficiency,” he said.
The minister said the government wants to achieve a primary surplus on a commitment basis of 1.5 percent of gross domestic product (GDP) from 2025 to 2028, a critical target under the IMF-backed program.
“We also seek to firmly anchor inflation expectations and preserve financial stability, restore public debt to 55 percent of GDP or less, and an external debt service to revenue ratio of 18 percent or less,” Ofori-Atta added.
Ghana’s inflation rose to 42.2 percent in May, after falling for four consecutive months since January to 41.2 percent in April, from a record high of 54.1 percent in December.
“Let me state that securing the IMF program is not an end to our current challenges, despite significantly paving the way for us to implement our ambitious and well-thought-out reform program for our economy and country,” the minister said.
Last month, the IMF approved a 3-billion-U.S. dollar loan for Ghana to support the government’s economic reform program to rescue the country from severe debt overhang, soaring inflation, and continuous currency depreciation.
