General News of Saturday, 28 February 2015
Ghana’s economy will not grow beyond 3.5 per cent, in spite of the financial bailout from the International Monetary Fund, (IMF), Dean of Graduate Studies at the Methodist University College Ghana, Professor Kodwo Ewusi has said.
The government on Thursday received $940 million from the IMF to help stabilize the cedi and reduce the fiscal deficit. Some analysts have said the money will not be enough to fix the struggling economy.
According to Kodwo Ewusi, the impact of the Fund’s programme on the economy will not be immediate.
Prof. Ewusi made these comments at the 48th J.B Danquah Memorial Lectures. He said Ghanaians would have to wait at least six months to experience the impact of the IMF bailout.
“The immediate journey does not look bright. The infrastructural shortcomings remain a blight on Ghana’s business environment.
“Areas of concern are energy and water My own prediction of 3.5 percent is based on the fact that, if the situation doesn’t change, factories cannot produce as much as they did last year. Last year, the growth was 4.2 percent, then definitely, this year it will give 4 percent.”
However, the Minister of Finance, Seth Terkper, has said though the $940 million is not doing directly to the budget, the government is hopeful that development partners will release donor funds which has been withheld over fiscal indiscipline.