Ghana better placed to withstand commodity price shocks – IMF

The International Monetary Fund's Director for Africa, Zeine Zeidane, has stated that Ghana is in a strong position to withstand potential commodity price shocks as the country enters the coming months. This resilience is attributed to policy reforms and buffers built by the nation to shield its economy from external shocks. When asked about the impact of a decline in commodity prices on exporting countries like Ghana, Zeidane acknowledged the situation but emphasized the measures implemented in recent months that have strengthened Ghana's ability to absorb the impact.

He addressed concerns regarding Ghana's heavy reliance on gold for export revenue, stating that the country's policy reforms would help mitigate the effects of such external developments. Ghana's economic performance has been robust, leading two credit rating agencies to upgrade the country's ratings. Gold remains the primary driver of Ghana's $22.4 billion in export earnings, according to recent Bank of Ghana data.

When questioned about artificial intelligence and its implications for productivity in Ghana and other African economies, Zeidane stated that its full impact remains uncertain, suggesting that the technology's effect on jobs in Africa could be limited. However, he cautioned against underestimating its potential influence. Lastly, Zeidane clarified that while the IMF is not opposed to measures aimed at reducing petroleum prices at the pump, poor targeting often prevents such policies from delivering their intended benefits.