IMF promise bailout as Ghana inflation hit 29.8%

De International Monetary Fund (IMF) say dem make ready to support Ghana with financial bailout.

Dis be afta week long meeting with Ghana govment afta President Akufo-Addo invite dem to help de country address de growing economic challenges.

IMF team finish dia meetings with in Ghana yesteon positive note with promise say dem go support de country with bail out.

De IMF delegation to Ghana wey Carlo Sdralevich lead between July 6-13, 2022 assess de economic situation in de country plus de Enhanced Domestic Program of govment dem want make IMF support.

Dem meet wit de Vice President Mahamudu Bawumia, Finance Minister Ken Ofori-Atta, Govnor of Bank of Ghana, finance committee for parliament, CSOs den oda development partners and agencies.

Highlights from de meeting

Afta de weeklong engagement, de IMF inside statement dem release talk say “Ghana dey face challenging economic and social situation inside difficult global environment.”

According to de IMF, de fiscal and debt situation recently worsen sake of Covid-19 pandemic.

Dem add say “investor concerns trigger credit downgrades, capital outflows, loss of external market access den rising domestic borrowing costs.”

Dem also add say Russia-Ukraine crisis cause global economic shock which dey hit Ghana at a time when de country still dey recover from de Covid-19 pandemic.

Dis dem believe create small room for de kontri to escape de troubles causing slow economic growth, accumulation of unpaid bills, massive exchange rate depreciation, and den surge in inflation.

Ghana Inflation hit 29.8% 

Inflation rate for Ghana rise catch 29.8%, de highest since 2003 wen Ghana declare itself Highly Indebted Poor Country (HIPC) 19 years ago. 

Cost of living continue to rise as citizens continue to spend more money for less goods. Rising cost of living push inflation go 19.4% as of March 2022, by May inflation jump catch 27.6% and de latest inflation rate in June be 29.8% according to de Ghana Statistical Service.

Dis be de 13th consecutive month inflation dey rise for Ghana resulting in two-day demonstration for de capital, Accra. 

Pipo dey spend more on food, housing, fuel/transport, utilities (water/electricity/gas) den stuff.

Cost of Transport be one of de major drivers of inflation for de kontri, commuters dey pay 41.6% more.

Meanwhile, housing which dey include water, electricity den gas hit 38.4% inflation wey food prices rice by 30.7%. 

Inflation on some major products for Ghana 

Dis be de percentage of inflation on some major products for Ghana 

Starting de year around 13.9%, de inflation rate shoot up de price of food, goods and services, living costs den tins. 

Dis cause high living costs in de kontri, a situation wey cause youth group called #AriseGhana to embark on two-day protest against goment last week.

De youth group mount pressure on leaders to address de challenges in de economy, two days afta wey goment announce de IMF move.

Labour front too dey mount pressure on govment for 20% of basic salary as Cost of Living Allowance (COLA) else dem go lay down dia tools.

Pre-tertiary teachers unions already dey on strike over failure of goment to pay dia COLA.

Last time Ghana go IMF be 2015 wen de kontri plunge into economic crisis.

Ghana at de time secure $1bn IMF loan to revive de economy.