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Russia-Ukraine War, Part Of Ghana’s Woes – Ofori-Atta

The Minister of Finance, Ken Ofori-Atta has said that Ghana’s economic recovery is largely dependent on the outcome of the Russia-Ukraine war.

The minister made this statement during the presentation of the 2023 Annual Budget Statement and Economic Policy to Parliament, Mr. Ofori-Atta said the country’s external sector performance will depend on the quick resolution of the Russia-Ukraine conflict.

“Mr Speaker, the external sector performance in the outlook will depend largely on the quick resolution of the Russia-Ukraine war and the outcome of recession fears in advanced economies. The thrust of the external sector will focus on rebuilding external buffers, enough to cover at least three and half months of imports of goods and services to cushion the economy against adverse external shocks. This will be underpinned by, among others, bilateral support, and strong remittance inflows.”

The minister also highlighted that the devastating impact of the COVID-19 pandemic has led to a significant reduction in revenue generation and consequently increased expenditures coupled with the double jeopardy of the Russian-Ukraine war.

He further stated that in light of these unprecedented global crises ravaging all currencies, historic living and inflation levels have necessitated the Government to seek the intervention of the International Monetary Fund (IMF) with plans far advanced to Ghana securing a fiscal facility.

“Mr Speaker, Government and the IMF have agreed on programme objectives, a preliminary fiscal adjustment path, debt strategy and financing required for the programme to be in line with the Government’s Post-COVID-19 Programme for Economic Growth (PC-PEG). The PC-PEG is Government’s blueprint to restore macroeconomic stability, promote debt sustainability, sustain economic recovery and support structural reforms.”
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