Ghana government has hinted fews days ago that it will be going to the (IMF) for financial support.
Here are four key reasons as outlined by Citi FM journalist, Bernard Avle.
The country’s economic fundamentals and fiscals have been described as weak because our income/revenue is far less than our expenditure.
Also, Ghana’s public debt stock stands at GH¢391.9 billion as of the end of the first quarter of 2022, translating to a debt to GDP of 78 percent.
Poor credit from international markets
Ghana has had to turn to the IMF because it has lost credibility with all international rating agencies.
Another reason why Ghana is said to be going to the IMF is because of global issues.
Like many other countries across the world is suffering from the effects of the coronavirus pandemic and its resulting economic downturn.
Structure of the economy
Ghana’s economy is primarily small and not diverse enough. The country’s over reliance on imported goods and services, and the export of its resources put us at the mercy of happenings on the global market.