Ghana better placed to withstand commodity price shocks – IMF

The International Monetary Fund's (IMF) Director for Africa, Zeine Zeidane, has stated that Ghana is currently well-equipped to handle potential commodity price shocks as the country enters the coming months. This assertion stems from the strong economic performance Ghana has exhibited, along with the implementation of various policy reforms aimed at buffering its economy against external shocks.

Zeidane made these remarks when responding to a query from Joy Business during the launch of the IMF's Regional Economic Outlook report in Bangkok, Thailand.

Although a fall in commodity prices could negatively impact commodity-exporting nations like Ghana, Zeidane highlighted that the recent measures put in place have bolstered Ghana's capacity to absorb the repercussions of such events. This comes as there are apprehensions about Ghana's significant dependence on gold exports, which might expose the economy to the risk of a price slump.

Zeidane also remarked on Ghana's impressive economic growth, which has prompted two credit rating agencies to raise the country's ratings. Gold constitutes the primary source of Ghana's export earnings, accounting for $22.4 billion. In response to a separate question concerning artificial intelligence and its implications for productivity, Zeidane expressed uncertainty regarding the technology's full impact on Ghana and other African economies.

He acknowledged that its effect on employment in Africa might be limited but cautioned against underestimating its potential influence on the region.

Regarding fuel subsidies, Zeidane made it clear that the IMF does not oppose measures designed to lower petrol prices at the pump. He further explained, however, that poor targeting often hinders these policies from delivering their intended benefits.