IMF mission leader: Russia-Ukraine conflict, COVID-19, harming Ghana’s economy

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The government’s claim that the ongoing conflict between Ukraine and Russia and the COVID-19 pandemic are contributing factors to Ghana’s economic difficulties has been repeated by Carlo Sdralevich, the head of the IMF negotiation team in Ghana.

Sdralevich came to the conclusion that Ghana’s fiscal and debt condition has significantly deteriorated as a result of the COVID-19 outbreak after meeting with the major stakeholders in the nation.

He acknowledged that the invasion of Ukrainian territory by Russia is having a negative impact on the nation as it struggles to recover from the shock of the COVID-19 outbreak.

According to Carlo Sdralevich, “Ghana is experiencing a severe economic and social condition in a complex global climate. The COVID-19 pandemic has resulted in a dramatic worsening of the financial and debt crisis. Investors’ worries have also led to credit rating downgrades, capital outflows, a loss of access to external markets, and an increase in domestic borrowing prices.

“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 manoeuvre. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.

Sdralevich expressed commitment “to support Ghana at this difficult time, consistent with the IMF’s policies”.

After President Nana Addo Dankwa Akufo-Addo called Managing Director Kristalina Georgieva to request an extended credit facility for the country, the International Monetary Fund (IMF) team traveled to Ghana.

The group, under the direction of Carlo Sdralevich, arrived in Ghana on Tuesday, July 5, and began meetings the following day.

They spoke with Ken Ofori-Atta, the sector minister, the staff of the Ministry of Finance, and Vice President Dr. Alhaji Mahamudu Bawumia.

In order to discuss social spending, the team also met with the Finance Committee of the Parliament, civil society organizations, and development partners including UNICEF and the World Bank.

Source: Ghanatodayonline.com

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