Dr. Lord Mensah, a renowned Economist, says Ghana is not far from returning to the International Monetary Fund (IMF) program.
According to the lecturer at the University of Ghana Business School, although the country has made a lot of investment in enhancing revenue generation, its effect is not visible.
“If we continue to realize this dwindling revenue over the years and it continues for about five years, I think we are not far from going to IMF again,” he said.
He further explained that “as a country we’ve done a lot of investment in a direction to enhance revenue generation. So, I ask myself why is it that all this investment is not building up into the revenue generation. Is it because the investment has been done and there is a large effect that we expect to see in the future? So, for me I think that so many things are not adding up in the economic indicators that we have in the country. That is why when IMF came, they had to caution us as to how our debt is brewing in relation to the revenue that we are generating.”
This comes after the International Monetary Fund (IMF) asked government to be watchful about the country’s rising external debt. The fund however stated that Ghana’s economy is stable and projected a 7 percent Gross Domestic Product (GDP) growth for 2019.
Ghana officially exited the IMF’s Extended Credit Facility program in April, 2019.