IMF loan won’t save Ghana’s economy – John Hopkins Economics Professor

After the government of Ghana made a U-turn to go to the International Monetary Fund (IMF) for a support package, Steve Hanke, an economist and professor at John Hopkins University has in a tweet said the loan from IMF can not save Ghana’s economy.

In his tweet, he said, “Today, I measure inflation in Ghana at a stunning 49.35%/ yr. In a last ditch efort, the govt. has begun negotiations w/ the IMF on a bailout deal. SPOILER ALERT: Another IMF loan won’t save GHA’s economy. Like its past 17 IMF programs, a new one will fail.”

The Ghanaian economy has been crippled by the Covid-19 pandemic, high inflation and depreciating currency. While the government has also blamed the Russia-Ukraine War as another reason why the economy is bad, most Ghanaians believe the government is saying that to cover up for mismanaging the economy.

While members of the opposition party, the National Democratic Congress (NDC) had been telling the government to go to the IMF for a bailout, the government had on various occasions stated emphaitcally that the country will not go to the IMF for assistance. But after months of saying “we have the men” to fix the economy, the government is now going to the IMF for help.

–The Post Ghana