Going to IMF will restore investor confidence—Prof. Quartey

The Director of the Institute of Statistical, Social and Economic Research, (ISSER), Professor Peter Quartey, has described government’s decision to go to the International Monetary Fund (IMF) as a move that will gradually bring back investor confidence into Ghana’s economy.

According to him, going to the IMF will send a signal to investors that Ghana will follow strict fiscal measures to attain economic growth.

“Let us be real, going through a programme doesn’t start immediately. You have to start slowly and then get the result in the future. But definitely, it will build investor confidence for Ghana”, he said.

Prof. Quartey stated that the country needs to boost investor confidence to attract funding into key sectors of the economy.

He explained that the IMF will help achieve that feat by strengthening Ghana’s balance of payment to withstand shocks.

“The IMF is primarily known for supporting countries to have a strong balance of payment sheet and this is what they will help to achieve”.

Prof. Quartey however stressed that a rebound of the economy will take time to achieve since the support will be developed into a programme before it is implemented.

Background

President Akufo-Addo directed the Finance Minister, Ken Ofori-Atta, to begin formal engagements with the International Monetary Fund, for an economic programme.

A statement signed by the Information Minister, Kojo Oppong Nkrumah, and dated July 1st, 2022 indicated that there had already been a conversation between the IMF boss, Kristalina Georgieva and President Akufo-Addo. conveying government’s decision to engage the Fund.

“The President of the Republic, Nana Addo-Dankwa Akufo-Addo, has authorised Finance Minister, Ken Ofori-Atta, to commence formal engagements with the International Monetary Fund (IMF), inviting the Fund to support an economic programme put together by the Government of Ghana”, the statement said.