Economy won’t grow beyond 3.5% depite IMF deal – Economist

Ghana's economy will not grow beyond 3.5 percent, in spite of the

financial bailout from the International Monetary Fund, (IMF), the

Dean of Graduate Studies at the Methodist University College Ghana

Professor Kodwo Ewusi has said.

The government on Thursday received $940 million from the IMF to help

stabilize the cedi and reduce the fiscal deficit.

Some analysts have said the money will not be enough to fix the

struggling economy.

According to Kodwo Ewusi, the impact of the Fund's program on the

economy will not be immediate

Prof. Ewusi made these comments at the 48thJ.B Danquah Memorial Lectures.

He said Ghanaians would have to wait at least six months to experience

the impact of the IMF bailout.

"The immediate journey does not look bright. The infrastructural

shortcomings remain a blight on Ghana's business environment.

Areas of concern are energy and water My own prediction of 3.5

percent is based on the fact that, if the situation doesn't change,

factories cannot produce as much as they did last year. Last year, the

growth was 4.2 percent, then definitely, this year it will give 4

percent."

However, the Minister of Finance, Seth Terkper has said, though the

$940 million is not doing directly to the budget, the government is

hopeful that development partners will release donor fundswhich has

been withheld over fiscal indiscipline.

Credit: Citifmonline.com