Information Minister Kojo Oppong Nkrumah has said that the International Monetary Fund (IMF) forecasts about global and African economies for 2022 and 2023 are worrying.
He urged his colleagues in economic discourse to interrogate these forecasts and their causes.
He also asked analysts to examine the adequacy of responses by governments and the proposed alternatives.
“The forecasts about the global and African economies 2023 are very worrying. I encourage my colleagues in economic discourse to interrogate these forecasts and their causes. Additionally we should examine the adequacy of responses by govts and the proposed alternatives,” the Ofaose Ayirebi lawmaker tweeted.
The IMF has said growth in sub-Saharan Africa will slow sharply to 3.6% in 2022 and remain low at 3.7% in 2023.
The Fund further indicated that financial stability risks have increased amid the highest inflation in decades and the ongoing spillovers from Russia’s war in Ukraine to European and global energy markets.
Amid poor market liquidity, there is a risk that a sudden, disorderly tightening in financial conditions may interact with preexisting vulnerabilities.
In emerging markets, rising rates, weak fundamentals, and large outflows have pushed up borrowing costs, particularly for frontier economies, with a heightened risk of additional defaults.
In China, the property downturn has deepened as sharp declines in home sales have exacerbated pressures on developers, with heightened risks of spillovers to the financial sector.