Sagnarigu MP – Atta Issah writes: My observations at the IMF spring meeting and the way forward

As a young MP, I was privileged enough to join the Ghanaian delegation that traveled to Washington, D.C., for the IMF—World Bank spring meetings.

This posed a number of opportunities for me, first of all, to learn from the many people who will be attending the meeting from all over the world, and also about the workings of the Bretton Woods Institutions.

As a member of the Finance Committee of the 9th Parliament of the Republic of Ghana, I needed to do myself some good by keeping an open mind and learning, observing, and creating great relationships. My take on the five-day meeting is as follows:

Global economic outlook

Growth Projections: The IMF forecasts global growth at 3.3% for 2025, with a gradual decline to just above 3% over the next five years, well below historical averages.

This slowdown is attributed to factors such as ageing populations, geopolitical tensions, and tightening financial conditions. What this means is that countries across the world, including Ghana, may adjust their targets for the year.

Remember Ghana is on an IMF balance of payment support and this may throw the country economic gains out of gear, but adapting to home grown solutions and expenditure cuts as we have seen demonstrated by the John Mahama administration. If this continues, Ghana may see some more growth

Debt concerns

The IMF is worried about global public debt. It is projected to reach 100% of global GDP by 2030, raising alarms about fiscal sustainability.

Emerging markets, in particular, face challenges due to rising borrowing costs and limited access to international capital markets.

Third-world countries like ours are at risk, and urgent steps need to be taken to win the confidants of the international market

Trade tensions 

Discussions at the meetings highlighted the lack of clarity regarding the U.S. tariff policies, especially under President Donald Trump.

Despite numerous trade proposals, no agreements were finalized, leaving global financial leaders concerned about the economic outlook. This leaves a lot of worry for many who trade with the US.

During the meeting, a few things ran through my mind, especially the implications for my beloved country, Ghana.

Fiscal consolidation

Ghana has made progress in fiscal consolidation, with the primary fiscal balance improving significantly. The government aims to achieve a primary surplus of 1½% of GDP in 2025 through enhanced domestic revenue mobilization and expenditure rationalization. ​I urge the government not to renege on this target since it will go a long way to help macro economic stability.

Debt restructuring

The country is engaged in comprehensive debt restructuring efforts, including agreements with official creditors and Eurobond holders.

These initiatives are expected to reduce Ghana’s debt-to-GDP ratio currently stands at 61.8 per cent. It is estimated that a completion of the debt exchange program will push Ghana’s GDP to ratio 55 percent by the end of 2025, a significant improvement from the previous year of 2024

Energy sector reforms

Addressing challenges in the energy sector, Ghana has launched the Energy Sector Recovery Programme to achieve financial stability.

Efforts include renegotiating contracts with Independent Power Producers to reduce costs and alleviate fiscal strain.

The coming in of the phase two of the Atuabo Gas processing plant will reduce the import of gas and save the country fiscally.

Monetary policy

The Bank of Ghana has maintained a prudent monetary policy stance to sustain a reduction in inflation and strengthen financial sector stability. Measures include recapitalizing state-owned banks and rebuilding international reserves.

Path forward for emerging markets

Structural reforms

Emerging markets must prioritize structural reforms to enhance fiscal resilience, improve governance, and foster private sector investment. These reforms are crucial for sustaining economic growth and development.​

International uspport

There is a call for increased support from international financial institutions to address challenges such as weak domestic revenue mobilization and limited access to international capital markets. Tailored and enhanced technical support is essential for sustainable development.

Debt Management

Effective debt management strategies, including timely debt restructuring and fiscal discipline, are vital to prevent debt distress and ensure long-term economic stability.

The recent announcement by the Finance Minister of an amendment to the public procurement act to include commencement certificate before a project can be done is commendable and must be applauded.

This will save the country of payment of projects that never saw the light of day. The agric mechanisation programmes will also help reduce debt burden, and more investment will be made in the sector.

Atta Issah

MP for Sagnarigu

Asaase Broadcasting Company airs on Asaase 99.5 Accra, Asaase 98.5 Kumasi, Asaase 99.7 Tamale, Asaase 100.3 Cape Coast, AsaasePa 107.3 (Accra).
Affiliates: Bawku FM 101.5, Bead FM 99.9 (Bimbilla), Mining City Radio 89.5 (Tarkwa), Nandom FM 101.9, Nyatefe Radio 94.5 (Dzodze), Sissala Radio 96.3 (Tumu), Somuaa FM 89.9 (Gushegu), Stone City 90.7 (Ho) and Wale FM 106.9 (Walewale).
Listen online: asaaseradio.com, Sound Garden and TuneIn.
Follow us:
X: @asaaseradio995, @Asaase985ksi, @Asaase997tamale, @asaase1003, asaasepa1073
Instagram: asaaseradio99.5, asaase985ksi, asaase100.3, asaase99.7tamale, asaasepa107.3
LinkedIn: company/asaaseradio995. TikTok: @asaaseradio99.5
Facebook: asaase99.5, asaase985ksi, Asaase100.3, asaase99.7, AsaasePa107.3.
YouTube: AsaaseRadioXtra.
Join the conversation. Accra: call 020 000 9951/054 888 8995, WhatsApp 020 000 0995. Kumasi: call 059 415 7985 or call/WhatsApp 020 631 5260. Tamale: call/WhatsApp/SMS 053 554 6468. Cape Coast: call/WhatsApp 059 388 2652.
#AsaaseRadio
#AsaasePa
#TheVoiceofOurLand