Ghana better placed to withstand commodity price shocks – IMF

Ghana is entering the coming months from a strong position to withstand potential commodity price shocks, the Director of the International Monetary Fund’s African Department, Zeine Zeidane, has said.

He attributed this resilience to policy reforms and the buffers the country has built to cushion its economy against external shocks.

Mr Zeidane was responding to a question from Joy Business at the launch of the IMF’s Regional Economic Outlook report in Bangkok, Thailand.

He acknowledged that a decline in commodity prices would affect exporting countries, including Ghana. However, he said measures implemented in recent months had strengthened Ghana’s ability to absorb the impact.

His comments come amid concerns that Ghana’s heavy reliance on gold for export revenue could leave the economy vulnerable to a downturn in prices.

Mr Zeidane said the country’s policy reforms would help limit the effects of such external developments.

He also described Ghana’s economic performance as strong, noting that the improvement had led two credit rating agencies to upgrade the country’s ratings.

Recent Bank of Ghana data showed that gold was the main driver of Ghana’s $22.4 billion in export earnings.

Responding to a separate question on artificial intelligence and its implications for productivity, Mr Zeidane said the technology’s full impact on Ghana and other African economies remained uncertain.

He suggested that its effect on jobs in Africa could be limited, while cautioning against underestimating its potential influence.

On fuel subsidies, Mr Zeidane said the IMF was not opposed to measures aimed at reducing petroleum prices at the pump.

He explained, however, that poor targeting often prevented such policies from delivering their intended benefits.

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