By Amoako Kwame
The International Monetary Fund (IMF) has cautioned that policy complacency poses the biggest risk to Ghana’s economic recovery, urging the government to sustain the pace of reforms to protect the gains achieved so far.
IMF Resident Representative in Ghana, Dr Adrian Alter, said the sustainability of the recovery would depend largely on the government maintaining the momentum of reforms while creating an enabling environment for the private sector to drive job creation and economic growth.
Speaking in an interview with Bernard Avle on Channel One TV’s The Point of View on Monday, August 24, Dr Alter described the recent increase in private sector credit as an encouraging sign of improving economic activity.
“I would say the key risk is policy complacency. That’s the number one risk. The private sector should be the one creating jobs and boosting growth,” he said.
Dr Alter noted that private sector credit had increased by about 40% year-on-year, according to the latest Bank of Ghana statistics, describing the development as a positive signal for the economy.
He stressed, however, that Ghana’s recovery would remain sustainable only if the government continued implementing its reforms.
“I would say that the recovery is sustainable if the reform momentum continues,” he said.
Commodity prices pose additional risks
Dr Alter also identified weaker commodity prices, particularly for gold and cocoa, as key risks to Ghana’s economic outlook.
He explained that fluctuations in commodity and energy prices could affect the country’s current account balance, while climate-related shocks and geopolitical tensions could expose the economy to further external pressures.
“Other risks obviously include weaker commodities, gold in particular, but also it could be cocoa prices, it could be energy prices, which are all jointly affecting the current account balance,” he said.
According to him, rising geopolitical tensions could tighten global financial conditions and push up energy prices, creating additional pressure on Ghana’s economy.
He further warned that Ghana’s heavy dependence on gold exports leaves the country vulnerable to shifts in global gold prices, making economic diversification critical.
“Gold, because of the concentration on the export side, gold prices are a relevant risk for the economy, and that’s why diversification is key,” he said.
Dr Alter therefore called for greater investment in agro-processing, manufacturing and other service sectors to broaden Ghana’s economic base and improve its resilience to external shocks.
He also urged the government to continue building both domestic and external economic buffers to strengthen the economy against future shocks.
