The Member of Parliament for Sagnarigu, Atta Issah, has projected that countries across the world, including Ghana, may adjust their economic targets for the year, following the International Monetary Fund’s (IMF) forecast of global growth at 3.3% for 2025, with a gradual decline to just above 3% over the next five years well below historical averages.
According to the MP, who is a member of the Finance Committee of Parliament, this slowdown is attributed to factors such as ageing populations, geopolitical tensions, and tightening financial conditions.
He noted that Ghana, currently under an IMF balance of payment support program, may see its economic gains disrupted. However, he stressed that by adapting homegrown solutions and implementing expenditure cuts, as demonstrated by the John Mahama administration, Ghana could maintain a trajectory of growth.
Atta Issah, who had the opportunity as a young MP to join the Ghanaian delegation that travelled to Washington, D.C. for the IMF-World Bank Spring Meetings, shared his observations in a social media post. He noted that attending the meetings provided him with valuable opportunities to learn from global participants and understand the workings of the Bretton Woods Institutions.
“As a member of the Finance Committee of the 9th Parliament of the Republic of Ghana, I needed to do myself some good by keeping an open mind to learn, observe, and build strong relationships,” he stated.
On Debt Concerns, the lawmaker observed that the IMF is increasingly worried about global public debt, which is projected to reach 100% of global GDP by 2030, raising alarms about fiscal sustainability.
He emphasized that emerging markets, in particular, face challenges due to rising borrowing costs and limited access to international capital markets, adding that third-world countries like Ghana are at risk and must take urgent steps to win the confidence of international markets.
On Trade Tensions, the MP disclosed that discussions at the meetings highlighted concerns over the lack of clarity regarding U.S. tariff policies, particularly those during President Donald Trump’s tenure.
He noted that despite numerous trade proposals, no agreements were finalized, leaving global financial leaders worried about the economic outlook — a situation he said has serious implications for countries like Ghana that trade heavily with the U.S.
On Fiscal Consolidation, the legislator observed that Ghana has made notable progress, with the primary fiscal balance improving significantly.
He stated that the government aims to achieve a primary surplus of 1½% of GDP in 2025 through enhanced domestic revenue mobilization and expenditure rationalization. He urged the government to remain committed to this target, as it will significantly contribute to macroeconomic stability.
Speaking on Debt Restructuring, the Sagnarigu MP expressed confidence in Ghana’s comprehensive debt restructuring efforts, including agreements with official creditors and Eurobond holders, which are expected to reduce the country’s debt-to-GDP ratio.
He stated that Ghana’s debt-to-GDP ratio, currently standing at 61.8%, is projected to fall to 55% by the end of 2025 following the completion of the debt exchange program — a significant improvement from 2024.
On Energy Sector Reforms, the MP highlighted the launch of the Energy Sector Recovery Programme aimed at achieving financial stability.
Efforts under this program include renegotiating contracts with Independent Power Producers to reduce costs and alleviate fiscal strain.
He expressed optimism that the upcoming phase two of the Atuabo Gas Processing Plant will reduce gas imports and provide significant fiscal savings for the country.
Touching on Monetary Policy, he commended the Bank of Ghana for maintaining a prudent monetary stance aimed at sustaining inflation reduction and strengthening financial sector stability.
He noted measures such as recapitalizing state-owned banks and rebuilding international reserves as crucial to achieving these goals.
Suggesting a path forward for emerging markets, the Sagnarigu MP recommended prioritizing structural reforms to enhance fiscal resilience, improve governance, and foster private sector investment — reforms he emphasized as critical for sustaining economic growth and development.
On International Support, he observed a strong call for increased support from international financial institutions to address challenges such as weak domestic revenue mobilization and limited access to international capital markets.
He argued that tailored and enhanced technical support is essential for sustainable development.
On Debt Management, the MP asserted that effective debt management strategies, including timely debt restructuring and fiscal discipline, are vital to preventing debt distress and ensuring long-term economic stability.
He commended the recent announcement by the Finance Minister regarding an amendment to the Public Procurement Act to require a commencement certificate before a project can begin.
He praised this measure, stating that it would save the country from having to pay for projects that were never executed.
Finally, he mentioned that agricultural mechanization programs will also help reduce the debt burden, and emphasized the need for increased investment in the agricultural sector.
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