Audio By Carbonatix
An Associate Professor of Finance at the University of Ghana Business School, Elikplimi Komla Agbloyor, has highlighted a number of factors that have consistently driven the country to the International Monetary Fund (IMF).
According to him, high unemployment and high lending interest rates are among the key factors driving the country to the IMF on a regular basis.
He was speaking on Joy FM’s Super Morning Show, in relation to the country’s decision to seek an IMF bailout.
Government has been blaming the current development on the Covid-19 pandemic and the Russia-Ukraine war.
The Professor, who has developed a module that helps to predict whether or not a country will go to the IMF, says otherwise.
According to him, Ghana's economic woes predate the Russian-Ukraine war and the outbreak of the Covid-19 pandemic.
"We were likely to go to the IMF again as far back as 2017," he stressed.
He acknowledged that the Russia-Ukraine war and the Covid-19, have contributed immensely to the decision, however, the propensity of the country to seek support from the IMF prior to the war was very high due to the aforementioned factors.
“The module identifies traditional factors such as the debt ratio, exchange rate, level of domestic savings, are key predicting factors dragging the country to the IMF,” he added.
That notwithstanding, he called for prudent measures to be adopted to avert the situation.
He believes one way to do that is by changing the structure of Ghana’s economy.
He noted that Ghana can actualise its dream of becoming a wealthy country by changing the structure of the economy, rather than seeking an IMF bailout.
“For me what the IMF programme does for us is to provide for us some space and time to be able to put our house in order. So that gives us time in the short to medium term to be able to implement the necessary policies to ensure that the economy is stronger,” he said on Joy FM’s Super Morning Show.
He was contributing to discussions that centered on the country’s decision to seek an IMF bailout as part of measures to cushion the economy, and how the country can do away with this development.
During the discourse which also sought to provide solutions to the country’s endless economic woes, he emphasised that until Ghana is able to change the structure of the economy, the country will continue to frequent the IMF.
Latest Stories
-
ORC begins enforcement of GH¢500 penalty for failure to file beneficial ownership information
5 minutes -
GRA assures it will meet GH¢225bn target for 2026 despite tax reform concerns
12 minutes -
Ofori-Atta Saga : Ex-appointees must face probes when invited – John Darko
18 minutes -
Haruna Mohammed rules out removal of names from NPP album
21 minutes -
Volta House of Chiefs nullifies enstoolment of Roland Adiko as paramount chief of Tanyigbe, affirms rotational succession
21 minutes -
FACT CHECK: Kennedy Agyapong’s claim that Adenta is a traditional NPP seat and that Bawumia did not campaign there is false
22 minutes -
Iran: Videos from mortuary show how deadly protests have become
24 minutes -
Over 2,000 screened as Ashanti Region Police recruitment exercise progresses
34 minutes -
Mallam Market chaos: Traders flout rules, crippling Accra-Kasoa Highway
34 minutes -
Preparations for NPP presidential primaries nearly complete — Haruna Mohammed
52 minutes -
AFCON 2025: the dominance of African coaches
54 minutes -
31 granted bail over illegal mining in Apramprama forest reserve
1 hour -
Son of Iran’s exiled late monarch urges supporters to replace embassy flags
1 hour -
Gold Empire Resources applauds gov’t crackdown on illegal mining; calls for prosecution of financiers and sponsors
1 hour -
Western North NPP raises alarm over cocoa sector neglect, cites lack of funds and jute sacks
2 hours
