'The economy is naked again after IMF programme' — Gideon Boako
The Member of Parliament for Tano North and a member of Parliament's Finance Committee, Dr. Gideon Boako, has cast doubt on the resilience of Ghana's economy following the successful completion of the International Monetary Fund (IMF) Extended Credit Facility (ECF) programme.
According to the lawmaker, the country's fiscal consolidation measures have come at the expense of development and are already being tested following the end of the three-year bailout programme.
His comments come days after the IMF approved the final review of Ghana's US$3 billion ECF programme, paving the way for the country to transition to a 36-month, non-financing Policy Coordination Instrument (PCI).
"IMF programme is over. The economy is naked again. After all, the much talked about resilience by government was just a hoax," Dr. Boako wrote in a social media post on Monday, August 3.
He argued that the government's fiscal consolidation strategy has failed to deliver sustainable economic strength and has instead suppressed development.
"The quality of our fiscal consolidation is also highly questionable. It is more of development suppression than fiscal consolidation. Fuel prices, tomato prices, and so on are really showing the skin of the economy," he added.
Meanwhile, the Ministry of Finance has stated that the successful completion of the IMF-supported programme reflects Ghana's progress in restoring macroeconomic stability through fiscal discipline, lower inflation, stronger external buffers and structural reforms.
The new PCI, according to the Ministry, will support continued policy reforms without additional financing.