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Coronavirus: IMF approves policy reforms and funding package to b

Coronavirus: IMF approves policy reforms and funding package to b
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IMF describes Ghana s economic outlook as improving

In its 2021 Article IV consultation with Ghana on Monday, the IMF said the government response helped contain the pandemic and support the economy, but at the cost of a record fiscal deficit. “…The economic outlook is improving, even though risks remain, including from the evolution of the pandemic and rising debt vulnerabilities,” the statement said. “The pandemic had a severe impact on economic activity. Growth slowed to 0.4 percent in 2020 from 6.5 percent in 2019, food prices spiked, and poverty increased”. The statement also noted that Ghana’s fiscal deficit dropped to 15.2 per cent of GDP and a further 2.1 per cent of GDP on additional spending with the aid of bulk domestic arrears, including energy and financial sector costs.

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