Dr. Patrick Asuming, a Development Economist from the University of Ghana Business School (UGBS), has advised President-Elect Mr. John Dramani Mahama to extend Ghana’s ongoing US$3 billion loan-supported programme beyond its 2026 deadline.
He said that an extension was crucial to addressing the structural weaknesses in the economy.
In an exclusive interview with the Ghana News Agency, Dr. Asuming explained that while Ghana had recently experienced some stability, this was likely to be short-lived.
Therefore, extending the IMF programme was necessary to sustain progress.
President-Elect Mahama has committed to continuing the implementation of the current three-year loan-supported programme and has requested further discussions with the IMF to make adjustments that would align the incoming government’s policies with the existing framework.
However, Dr. Asuming stressed that, given current developments, the programme must be extended beyond 2026 to avoid future economic challenges, especially considering the additional payments that would arise after that time.
Ghana’s GDP growth rate was 4.2 per cent in the first quarter of 2023, but it slowed to 3.2 per cent in the second quarter and further to 2 per cent in the third quarter.
Despite these declines, the economy showed improvement in 2024, with the GDP growth rate rising to 4.8 per cent in the first quarter, 6.9 per cent in the second quarter, and 7.2 per cent in the third quarter.
In spite of these positive figures, Dr. Asuming noted that challenges remained, particularly with high living costs and recent pressures on the Cedi, affecting both the micro and macroeconomic levels.
“We’ve seen the currency come under a lot of pressure. In recent weeks, we’ve seen some gain, but you get the sense that it’s because the Bank of Ghana has been pumping dollars, and that’s not a sustainable long-term strategy,” he said.
Dr. Asuming therefore, recommended that the incoming government extended the IMF programme after 2026, and ensured that robust measures were implemented to correct the weaknesses in the economy.
“It will take more time, and indeed things might get worse before they get better,” he said.
Dr. Asuming urged the government to focus on long-term policies and avoid spending outside the approved budget.
On revenue mobilisation, he emphasised the need for the government to broaden tax policies by exploring e-commerce taxes and supporting key industries, rather than increasing existing taxes or introducing new ones.
