IMF to Ghana, African nations: Tighten fiscal policies as global risks rise
Speaking at a press conference during the IMF-World Bank Spring Meetings, Managing Director Kristalina Georgieva warned that while Africa’s long-term prospects remain strong, immediate policy tightening is needed to navigate looming economic shocks. While Africa has been home to some of the world’s fastest-growing economies in recent years, Ms Georgieva cautioned that low-income and conflict-affected nations risk falling further behind due to the indirect effects of weakening global demand.The IMF has already revised down growth projections for the continent. The impact of current economic shocks varies across Africa. Oil-exporting nations like Nigeria face budget pressures from falling crude prices, while oil importers, including Ghana, benefit from lower energy costs. However, Ghana’s recent decision to raise interest rates for the first time in nearly three years—contrasting with Egypt’s rate cut—reflects the differing policy needs across African economies.Ms Georgieva outlined key recommendations […]
