It is not surprising that Ghana has met all the targets under the $3billion International Monetary Fund (MIF) programme for which the $600million second tranche is expected to be released, the Director of the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, Professor Peter Quartey has said.
He observed that the government got the revenue handles right with the passage of new tax instruments. This has ensured an increase in revenue and also ensured that the fiscal is within acceptable limits.
Professor Quartey was commenting on the confirmation by the Fund that Ghana’s economy is experiencing a rapid turnaround better than anticipated.
The Fund said macro-economic stability is being experienced while international reserves are witnessing a steady increase.
This was disclosed by the Fund’s Chief of Mission to Ghana, Stéphane Roudet, at a joint press conference with the Minister of Finance, Kenneth Ofori-Atta, on Friday, October 6.
“We also have the adjustment and fiscal position the Minister mentioned the numbers for June much better than the target,” Mr Roudet told the press.
“The external position in general is stronger, the currency has become much less volatile than what Ghana has experienced at the end of last year when it was a very challenging situation.
“So, clearly there is a turnaround, there is an improvement and signs of macroeconomic stability are now emerging.”
The IMF Mission Chief, however, cautioned the authorities not to be complacent but continue to keep the indicators going up.
“Again, this is not the end of the road [because] inflation is at 40 percent, everybody in this room wants to see it much lower.
“We’re coming from a position where inflation was 54 percent at the end of last year, so the travelling direction is certainly the right one and things are improving.”
Speaking on this development on the mid-day news on TV3 Monday October 9, Prof Quartey said “we have met the triggers, we have met the targets and that is not surprising to me because if you look at some of the key targets, getting our revenue handles right, new tax instruments that were passed, that has been done as well as an increase in revenue, also ensuring that our fiscal is within acceptable limits.
“All of these point in that direction. The exchange rate has been relatively stable, and inflation is high but it is coming down, even in terms of our growth numbers end of year target was below 2 percent, we have seen first-quarter, and second-quarter growth around 3 percent and we know that granted that nothing unforeseen happens, we normally grow better in the third and last quarters so granted that we grow at 3 percent, then we are likely to grow around 3 to 3.5 percent.
“So yes, for me, it is a good signal, some inflows, $600million will come in, which will stabilize the exchange rate, and the government will have some money,” he said.