The Managing Director of the International Monetary Fund (IMF), Kristalina Ivanova Georgieva-Kinova, has attributed the current economic woes facing Ghana to external factors such as the Russia-Ukraine war and the COVID-19 pandemic.
She made this known at the ongoing Africa Climate Change Adaptation Summit in the Netherlands.
According to the Bulgarian economist, the current global challenges have created serious debt crisis which calls for broader consultation among global leaders.
“We are also recognising that this shock has exhausted our people. People are tired of the pandemic and now they are hit a second time with inflation,” she said as quoted by asaaseradio.com.
“In many countries, the fiscal space is gone. When you look at the debt situation, for 25% of emerging markets that is not sustainable, just think of Sri Lanka and many countries that are in this position,” Georgieva-Kinova said.
“Actually, we see a country with strong economy, with strong fundamentals like Ghana, in a situation, in which it is harder to tap into markets because of these exogenous shocks, and for poor countries, it is over 60% that are in debt stress,” the IMF boss said.