Finance Minister Ken Ofori-Atta says the economy is “showing signs of recovery”.
During the presentation of the 2023 mid-year budget review, he highlighted the stabilization of the exchange rate, accompanied by a decrease in inflation and interest rates since December 2022 as evidenced by the recovering economy.
“These outturns are the result of the focused implementation of all the measures we presented in the 2023 Budget and the positive sentiments arising from the progress with the IMF Programme,” he stated.
Towards addressing the macro-fiscal challenges the economy faced in 2022, the government engaged the IMF to support the implementation of the country’s recovery efforts.
As a result, on 17th May 2023, the Executive Board of the IMF approved a 36-month Extended Credit Facility (ECF) in an amount equivalent to SDR 2.242 billion (approximately US$3 billion).
The Programme which is designed to restore macroeconomic stability and debt sustainability includes extensive reforms to strengthen resilience and lay the foundation for stronger and more inclusive growth.
He said: “Mr. Speaker, the macroeconomic environment has changed significantly since the 2023 Budget was presented to this august House in November 2022.
“Mr. Speaker, although pressures still exist, and there are formidable risks in the horizon, our economy is in a better position than it was seven months ago as the macroeconomic environment has seen relative stability since the beginning of the year.
“This is largely explained by factors, including the positive sentiments following the Staff Level Agreement reached in December 2022 and the subsequent approval of the 3-year US$3.0 billion IMF-ECF; the eventual passage of all fiscal measures in the 2023 Budget; the completion of the DDEP; and China’s agreement to co-chair the OCC.”