Economic challenges present opportunity for govt to do what it does best in resolving them – JFK

General Secretary of the NPP, Justin Frimpong Kodua
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The General Secretary of the New Patriotic Party (NPP) Justin Frimpong Kodua (JFK) has said the current economic challenges that the country is going through give an opportunity to the government to do what it does best in developing the nation.

He said at a forum as part of the NPP’s 30th anniversary on Thursday July 28 that the party recognizes the sufferings of Ghanaians but assured that the government will work to ameliorate the hardships.

“We know and acknowledge the current situation the country finds itself in however, the NPP sees these current challenges as yet another opportunity for the party and government to do what it does best and get the country out of the difficulties it is facing currently” he said.

Ghana’s economy is currently saddled with severe challenges.

This has led to the country heading to go to the International Monetary Fund for support.

Accordingly, a staff team led by Carlo Sdralevich arrived in Ghana on July 6 to engage the government of Ghana. The team concluded its initial work on Wednesday July 13.

The IMF team met with Vice President Dr Mahamudu BawumiaFinance Minister Ken Ofori-Atta, and Governor Ernest Addison of the Bank of Ghana.

They also met with the Parliament’s Finance Committee, civil society organizations, and development partners, including UNICEF and the World Bank to engage on social spending.

At the conclusion of the mission, Mr. Sdralevich issued the following statement said Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment.

The fiscal and debt situation has severely worsened following the COVID-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.

“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for maneuver. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.

“The IMF team held initial discussions on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability. The team made progress in assessing the economic situation and identifying policy priorities in the near term,” the IMF said.

It added “The discussions focused on improving fiscal balances in a sustainable way while protecting the vulnerable and poor; ensuring credibility of the monetary policy and exchange rate regimes; preserving financial sector stability; and designing reforms to enhance growth, create jobs, and strengthen governance.

“IMF staff will continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholders’ consultation

“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.
“Staff express their gratitude to the authorities, civil society, and development partners for their constructive engagement and support during the mission.”

The Government of Ghana on Friday July 1 announced that it was seeking support from the IMF.

This followed a telephone conversation between the President and the IMF Managing Director, Miss Kristalina Georgieva, conveying Ghana’s decision to engage with the Fund, a statement by the Ministry of Information said.

By Laud Nartey|3news.com|Ghana

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