The IMF also welcomed the fiscal adjustments envisaged in the 2021 budget, while stressing that fiscal consolidation was needed to address debt sustainability and rollover risks.
TUC in a statement signed by its Secretary General, Dr Yaw Baah kicking against the IMF bailout said IMF programmes have only imposed unnecessary hardships on Ghanaians with practically nothing to show for them.
In terms of expenditure and funds related to Covid-19, Ghana experienced positive net benefits as the funds raised were more than the expenditure incurred. So if the fresh and ongoing engagement with the IMF is pandemic induced, then it is pandemic mismanagement.
Although the expected growth of 5.2% is the lowest among other economic researchers, the World Bank has projected a growth of 5.5% for 2022. Also, the parent company of Stanbic Bank, Standard Bank has predicted an economic growth rate of about 6.2% in 2022 and 6.8% in 2023 amidst tough times for the Ghanaian economy.
In its latest World Economic Outlook report, the Fund said the Ghanaian economy will expand by 5.1% in 2023, 0.1% lower than the 2022 forecast, whilst it return to the pre-pandemic levels of 7.5% in 2027.
IMF's April 2022 Fiscal Monitor also revised its forecast of an end year inflation of 16.3% from an initial forecast of 8.8%. This means the country will miss the Bank of Ghana target of 8%+\-2. It indicated that, the rising inflation has been triggered by higher commodity prices such as crude oil and cereals as a result of the Russia/Ukraine conflict.
The experts says, it is a matter of the government being disciplined with it's expenditure. Although, some economists and financial analysts have advised the government to go to the International Monetary Fund (IMF) for a bailout to restore credibility to the economy and debt sustainability, the government have proofed adamant.