Economist and University of Ghana professor Godfred Bokpin has raised concerns over Ghana’s current posture under the International Monetary Fund (IMF) program, warning that the government’s heavy focus on meeting short-term targets could spell long-term trouble for the economy.
In a critical take on the ongoing economic recovery efforts, Prof. Bokpin pointed out that Ghana may be trading its future economic health for temporary relief, just to stay in line with IMF benchmarks.
“So we are sacrificing our medium-to-long-term survivability or the brightness of our medium-to-long-term for short-term to meet IMF program conditionality. So you smile to them, but just ahead there will be pain for you to have to deal with.
“Those are the things that you need to look at,” he warned. Drawing parallels with past experiences, he likened the current scenario to what unfolded in 2016, during another IMF-supported programme that saw similar outcomes. According to him, the patterns are too familiar to ignore.
“Then again, look, if you look at it side by side, you look at what happened in 2024, and you compare that to what happened in 2016, when again we were under IMF-supported programme. It’s just like repeating the outcomes of 2016 and all of that.”
Prof. Bokpin also touched on the government’s late budget presentation this year, describing the situation as a “nine-month budget” scenario that places an even greater burden on the fiscal system.
“So the real challenge, inasmuch as I agree with government that they are doing everything possible to bring the programme back on track, even using nine-month budget. Remember, I’m talking about nine-month budget, because the first three months is gone. Your budget was presented later part of March.
“You have expenditure in advance of appropriation, which was passed to enable you to scale the wall within the first quarter. So your 2025 budget can only travel nine months.” He emphasized the potential ripple effects of this strategy, especially on the nation’s ability to sustain growth over time.
“So you are using nine-month budget really to restore your fiscal sustainability pathway. That’s a great price you have to pay. And all of that. Once you do that now, the implication is that your medium- to long-term growth will have challenges.”
Prof. Bokpin’s comments come shortly after Finance Minister Dr. Cassiel Ato Forson stated at a joint press conference with IMF officials in Accra that Ghana would not renegotiate or extend its current IMF programme.
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