Deputy IMF boss: Fiscal discipline key to fast track stability

Visiting deputy IMF boss Min Zhu has asked government institute additional measures to ensure it spends within the approved budget and fast track expected economic recovery.

The much talked about market confidence in the Ghanaian economy is yet to be restored almost a year after signing onto the IMF programme.

This has raised concerns about whether the Fund program has really helped stabilize economy.

However, speaking at a press conference in Accra Monday, Mr. Zhu insists the programme is yielding the desired results.

“We’re making good and big progress. We are building the base to move further. The whole programme has multiple goals and one issue in the short term is debt sustainability,” he said.

According to him, managers of the economy have been making significant progress with cutting down debts.

“We see government deficits coming down from 10 to 7 [percent] and further to 5 percent and that is a big achievement,” he adds.

He also indicated that there might be need for government to review its bench mark price for oil exports, which is currently pegged at 53 dollars a barrel.

Min Zhu has been engaging policy makers and other stakeholders in Ghana in a bid to strengthen the Fund’s engagement with the country.

Click audio link to listen to Deputy IMF Managing Director.

Min Zhu also says accurate data from the statistical office is crucial in solving current economic challenges facing Ghana and other African countries.

Some economists have argued that several economic policies aimed at stabilizing the Ghanaian economy has not worked because of challenges with data collection.

The IMF deputy boss says it is important that the economic data obtained is precise to ensure that the various policies by the Fund work.

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