Forget IMF extension, Discipline can fix economy – Economist to Govt
Economist and a Professor at the University of Ghana Business School, Lord Mensah has challenged government to refrain from extending the IMF program, stating discipline as a key factor in managing the economy.
Ghana’s economy is projected to expand by 4.2% in 2025 and 4.8% in 2026, according to the World Bank’s latest Global Economic Prospects report.
While the forecast signals a recovery, growth remains below the pre-pandemic average of 5%, with risks to the outlook skewed to the downside.The World Bank warned that a sharper-than-expected slowdown in China, escalating geopolitical tensions—particularly in the Middle East—and worsening instability in East Africa and the Sahel could weigh on economic performance.
With these indicators, Prof Lord Mensah expressed the view that government should be able to run the economy without an IMF-supported programme and still be able to ensure good performance of all the indicators.
Asked whether Ghana should extend the programme with the Fund, Prof Mensah stated on Joy News that the country is already on a certain trajectory and does not expect anything to change.
“The government has made it clear that they may request an extension of the programme but I don’t think that we may need to for now, he said. Because looking at the momentum we have gathered, if we stick to the discipline under the IMF programme, after this programme, we should be able to meet the target and then also run the economy to the level where all the indicators will perform to the benefits of businesses, individuals and government, itself.”
The discussions, which started from Monday 10th February and are expected to end on Friday 14th, February 2025, will centre primarily on Ghana’s progress under the IMF-supported Programme and the policy direction of government on the 2025 Budget.
Other critical areas likely to be discussed will include revenue administration reforms, expenditure rationalization, the energy sector reforms, and monetary and exchange rate policy.
The Bank of Ghana, Ghana Revenue Authority, the Controller and Accountant General Department and other key institutions are expected to be present in the scheduled meetings. “The Government of Ghana assures the public of its commitment to prioritising macroeconomic stability, job creation and improved livelihood for the people of Ghana,” a statement issued by the Finance Ministry said.
