The Managing Director of the International Monetary Fund, Kristalina Georgieva, has urged the government to learn from the lessons of economic shocks, particularly, the debt default, and build the strongest possible foundation for growth.

Speaking at a meeting with President Akufo-Addo, Madam Georgieva said Ghana did not appreciate the size of the external and internal shocks that hit its economy, advising the authorities to exhibit fiscal prudence during this election year.

“I would like to share with you two thoughts, the first one is on the critical time for Ghana and the world economy that I had the privilege to be here with you. For Ghana, because the country is coming from a difficult period of high debt, fiscal deficit from the covid shock, and shock from the Russian-Ukraine war but also because, like many countries, Ghana did not appreciate the size of the shock".

“In an election year, the country must be more than fiscally disciplined to sustain its position. The main lesson from this experience is that you do the right thing now to build the strongest possible foundation for growth for Ghana”, she mentioned.

Ghana must build investor confidence

Furthermore, the IMF boss said the government must work to bring confidence in the domestic and international markets.

According to her, Ghana must build a better economic fundamental that accelerate economic growth to the pre Covid-19 pandemic years.

“It is the year to bring confidence in Ghana domestically and internationally at the level it was before. It is possible because we are seeing a world slightly better, so the economic attributes are better, and the critical resource of money will go where confidence in the capacity to perform is highest.”

“So Ghana can be in this place, as it was before…it can be again. We need to stay the course, you [Ghana] have achieved in a short time of the programme - good indicators”, she pointed out.

She concluded, saying, “Your growth is better expected, your inflation is lower than expected, the progress in debt restructuring has been faster than expected and now the task is to cement what has been achieved and do it with the unity of this country”.