Accra's return to the IMF has been praised by the ratings agencies and could trigger cheaper loans – but at the cost of wide-ranging budget reviews
The latest official budget data, for the first quarter, suggests Ghana was already overshooting this year's budget deficit targets before a second quarter when the full impact of Russia's invasion of Ukraine on food and fuel prices, and Western central bank rates hikes, became apparent. Given depletion of Ghana's 'fiscal space' during the global Covid-19 crisis, urgent action will be required to increase revenues, reduce recurrent and non-essential expenditures, and reduce Ghana's cost of borrowing and cost of refinancing maturing debts.
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