Dr. Ernest Addison, Governor of the Bank of Ghana, has stressed the importance of effective macroeconomic policies to tackle the current global economic challenges.
Speaking at the WAIFEM/IMF Regional Course on Financial Programming and Policies, he highlighted the need for capacity building in macroeconomic management to diagnose imbalances and design corrective policies.
The global economy is recovering from shocks like COVID-19 and the Russia-Ukraine conflict, which disrupted growth and pushed inflation to unprecedented levels.
Despite easing financial conditions, inflation remains high, and upside risks persist. Sub-Saharan Africa faces significant challenges, including funding squeeze, geopolitical risks, and security concerns.
The IMF projects growth to rise from 3.4% in 2023 to 3.7% in 2024, but this rebound is subject to risks and uncertainty.
To address these challenges, Dr. Addison emphasized policy adjustments to rebuild fiscal buffers and avoid debt crises.
He endorsed the IMF’s recommendation for revenue-based adjustments, citing the region’s 5% tax gap.
Ghana’s external shocks amplified pre-existing vulnerabilities, leading to a sovereign rating downgrade, loss of market access, and liquidity crisis.
The government has turned to a Fund-supported program to restore macroeconomic stability and implement structural reforms.
The Bank of Ghana is maintaining a tight monetary policy stance, enhancing exchange rate flexibility, and providing liquidity support to banks.
Dr. Addison concluded that public servants need to be well-grounded in modern macroeconomic and financial analysis techniques.
The WAIFEM/IMF course will provide hands-on training in macroeconomic modeling, forecasting, and policy analysis over several weeks.
