Economic analysts question IMF’s Inflation projection for Ghana amid challenges

Some economic watchers have expressed scepticism about the International Monetary Fund’s (IMF) projection that Ghana’s inflation will retreat to single digits by the end of 2025.

The IMF’s projection aligns with the Bank of Ghana’s aim for a 15 per cent year-end inflation rate in 2024.

However, some economic watchers argue that this projection is impracticable

Professor Lord Mensah, an associate professor at the University of Ghana Business School, acknowledges the optimism in the IMF’s forecast but highlights the challenges that may arise in implementing the necessary economic policies and structural reforms in Ghana’s economic landscape.

I mean that is when we get to know the pro level of the exchange debt, even though our debt service will come down, the government will definitely be on the same market looking for dollars to go and pay for this our debt and we know very well that the exchange rate depreciates, it tends to have a true effect on inflation because we live in a country where the dominant or the essentials of our living which has to do  with fuel usage and all those which we don’t manufacture here in Ghana.”

Professor James Atta Peprah, an Associate Professor of Economics at the University of Cape Coast, also disagrees with the projection, citing factors such as the cost of doing business in Ghana and the potential impact of power outages (dumsor) on rising prices.

“I disagree with that projection that inflation will come down, there are so many factors