Ghana will definitely come back to IMF for financial support – economist predicts

Minister of Finance, Ken Ofori-Atta

Ghana to return to IMF for financial bailout – economists predict

Ghana to face economic distress – Fitch, Bloomberg report

Parliament deadlocked over E-Levy

Economist, Dr Dennis Nsafoah has predicted that the current economic situation in Ghana will soon compel the government to return to the International Monetary Fund for financial support.

According to the Associate Professor at Niagara University in Canada, Dr Nsafoah explained that the government’s fiscal target for 2022 looks rather unrealistic as the country is set to return to the IMF.

“Will the government of Ghana ask for IMF intervention? It will be. This [government] may delay it, but eventually it [government] will go for that. Thinking about that situation and the most likely outcome could be at the end of the year when he realizes he can’t meet the revenue target,” he said. at Joy Business.

“The target the government has set is too high, and that’s when they will start talking to the IMF. But over the weekend I had the opportunity to interact with former finance minister Seth Terkper and then he commented that he thought it would be even shorter,” he said. he adds.

Dr Nsafoah made the comments during a forum organized by PFM Tax Africa to discuss Ghana’s economic outlook for 2022.

The Canada-based economist further suggested that “the most prudent thing the government can do is to start talking to the IMF, because the target they have set is quite unrealistic.”

While he also believes the government cannot meet its 42% revenue target for 2022, Dr Nsafoah said the conversations around the 2022 budget cannot be complete without the electronic transaction tax (E- Levi).

Addressing Ghana’s debt to gross domestic product ratio, the economist predicted that the country would most likely reach 83.9% by the end of 2022.

“…But the most likely outcome by 2025, as inflation in the United States declines and the Federal Reserve slows the rate at which it contracts money, things would improve.” And then we would have a debt-to-GDP ratio of around 73.6%,” he pointed out.

Meanwhile, in recent weeks, notable organizations have predicted economic distress for Ghana, especially this year.

The latest is from ratings agency Fitch which recently downgraded Ghana’s long-term foreign currency issuer (IDR) default rating to “B-” from B with a negative economic outlook.

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