Terkper warns against complacency amidst signs of economic improvement
Former Finance Minister, Seth Terkper, has agreed with IMF Mission Chief to Ghana, Stephane Roudet, that the worst phase of Ghana’s economic crisis is over.
He, however, cautions against complacency on the part of the Government in its bid to ensure fiscal consolidation and reduce the country’s debt stock.
Mr Terkper asserts that, despite making some positive strides, the country’s revenues remain stagnant and that there are still expenditure cuts to be made.
“The worst phase of Ghana’s economic crisis is over, but this may bring about complacency on the part of the Government.
“We still have stagnant revenues, and we still have expenditure cuts to make and other things to do. So, a lot depends on us within and outside the IMF programme,” he averred.
Stéphane Roudet, IMF Mission Chief for Ghana, during the recently held IMF/World Bank April Spring Meetings, expressed optimism about the Ghanaian economy’s future, asserting that the country has likely weathered its worst economic challenges and is on track for a full recovery.
Mr Roudet’s upbeat forecast is contingent on the government’s continued adherence to the IMF programme’s implementation, which he credits for stabilizing and even bolstering Ghana’s economic performance over the past year.
Responding to questions about potential economic disruptions to Ghana’s economy due to global developments, Mr Roudet downplayed concerns about a fleeting recovery.
He emphasized that sustaining macroeconomic stability rests squarely on the government’s commitment to the IMF programme.
“I think if the programme continues to be implemented the same way it has been implemented in the past. Yes, we will have seen the worst. However, fully restoring macroeconomic stability requires continued implementation of the programme. There is no doubt about this. I think this has been the message across the board.
“It has been the same from the managing director when she was in Accra some weeks ago. The programme needs to continue to be implemented to make sure that those gains are entrenched and further gains are being realized over the next few years,” he quipped.
Highlighting Ghana’s commendable performance, he stated that Ghana is overperforming under the IMF programme. He lauded the programme’s effectiveness, noting that it not only meets but exceeds its promises.
“Ghana is overperforming under the IMF programme and that is good. Ghana’s programme is delivering on its promises and in fact, it is over-delivering,” he remarked.
