Excessive election spending in 2020 contributed to Ghana’s economic woes – IMF

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has pointed to a combination of factors for Ghana’s recent economic challenges, including the impact of the COVID-19 pandemic and imprudent fiscal behaviour during the 2020 election period.

During an interview on the Point of View with Bernard Avle on Monday, March 18, Georgieva stressed the importance of learning from past experiences and applying those lessons to future policy-making.

She highlighted the effectiveness of robust macroeconomic and financial governance in navigating economic uncertainties.

Georgieva emphasized the necessity of implementing strong fiscal and monetary strategies capable of withstanding global financial pressures and promoting sustainable growth.

“The best avenue to pursue that is to get your policies in good order, get your institutions to deliver transparently for the economy for people. Nothing is more effective than strong macroeconomic and financial performance in a country.

“We have seen in Ghana, yes it was the COVID-19 shock that brought so much hardship on people. But it was also the excessive spending during the general elections period. Learn lessons from the past, apply for the future.”

Additionally, Georgieva stressed the importance of inclusivity in light of Ghana’s Parliament passing the anti-gay bill. She expressed support for a more inclusive society, noting that greater inclusivity leads to greater success for a nation.

“I understand that people in Ghana have taken the bill to the court. All I can say is that a more inclusive society is a more successful society. You want Ghana to flourish, make it so that everybody can contribute to the fullest of this country.”