President Mamaha calls for continuous implementation of IMF Prog to ensure economic stability in 2017
| Updated Mar 23, 2017 at 1:00pm
Outgoing President John Dramani Mhama has urged the incoming Akufo-Addo administration to continue the implementation of the International Monetary Fund’s (IMF) Extended Credit Facility Program (ECF) to ensure a stable economy in 2017.
According to him, the continuation of the program was necessary due to the inability of his administration to meet the deficit target for the year.
Addressing parliament in his last State of the Nation Address, (SONA) on Thursday, President Mahama said the program which is in its third and final year however, has resulted in an improved macro environment with a steady decline in inflation and interest rates.
“Multiple causes are responsible for our inability to meet the target. Reduced lifting from the Jubilee field on account of the turret bearing problems, non-realization of some expected non-tax revenue such as the sale of electro-magnetic spectrum, reduced cocoa export revenue and higher than expected election-related expenditures,” he said.
Outlining his achievements for the economy, President Mahama said a new public debt management strategy helped in realising a steady decline in public sector debt.
According to him, the public sector debt is estimated to have dropped from nearly 72 per cent to below 65 per cent.
“The currency has also enjoyed relative stability, depreciating at just above 4% this year,” he added.
He further noted that Ghana’s economy was still the second largest in West Africa with a GDP of almost $39 billion.
“Ghana has also moved up thirteen (13) places in the ease of doing business index and is currently considered number one on the World Bank index,” President Mahama said.
Highlighting the genealogy of IMF's programs, President Mahama said Former President Jerry John Rawlings started the structural transformation of the economy under the Economic Recovery Program.
This program he said, restored Ghana to a path of growth which he (Rawlings) handed over to Former President John Agyekum Kufuor.
He said President Kufuor continued the economic adjustment program and under the HIPC initiative achieved significant debt reduction.