MF Managing Director Kristalina Georgieva has assured that the Fund is ready to assist Ghana and other countries affected by the ongoing global tariff war.
Speaking during the launch of the Global Policy Agenda at the IMF/World Bank Spring Meetings in Washington DC, Georgieva said the IMF has the tools and resources to respond when requests for support are made.
“We can fall on our policy tools to assist any country, including financial assistance when needed,” she said.
“As always, we will be there for our members by focusing on what we do best—helping them secure economic and financial stability.”
Global Tariff War and Its Impact
Addressing journalists at a press conference, the IMF boss noted that while the direct effects of the tariff war may be minimal for many African countries, she is concerned about the broader consequences.
“I am worried about the indirect impact,” Georgieva said.
“Every country in the region must take steps to build more buffers and press ahead with programs that will help cushion expected shocks.”
Ghana’s Policy Response
Addressing journalists at a press conference, the IMF boss noted that while the direct effects of the tariff war may be minimal for many African countries, she is concerned about the broader consequences.
“I am worried about the indirect impact,” Georgieva said.
“Every country in the region must take steps to build more buffers and press ahead with programs that will help cushion expected shocks.”
Ghana’s Policy Response
Georgieva encouraged Ghana and other African nations to take proactive short-term measures to mitigate potential fallout.
“There is still a lot that can be done on the fiscal side, while building the required buffers for a moment of shock,” she stated. “Continue strengthening Ghana’s fundamentals.”
She also emphasised tax reforms: “Don’t use any excuses. Do more to broaden the tax base by reducing tax evasion and tax avoidance.”
Mixed Outcomes for African Economies
The IMF chief said the tariff war presents both challenges and opportunities, depending on the economic structure of each country.
“For oil producers like Nigeria, falling oil prices create additional pressure on their budgets,” she observed. “On the other hand, for oil importers, this is a breath of fresh air.”
She warned that the trade-offs will be tough for low-income countries but reiterated the importance of domestic resource mobilisation.
“We cannot have countries with a tax-to-GDP ratio below 15 per cent and still expect to sustain the functioning of the state.”
Advice to Central Banks
Georgieva advised central banks across the region to monitor inflation expectations closely while supporting economic growth.
“Watch the data. Watch inflation expectations. Central banks will need to strike a delicate balance between supporting growth and containing inflation,” she said.
She stressed the importance of central bank independence, adding: “Credibility is key. Protect it.”
Call for Greater Intra-African Trade
The IMF Managing Director also called for stronger inter-regional trade on the continent.
“Africa has so much to offer the world. Obviously, they have the minerals, the natural resources, and the young population,” she said.
“A more unified, more collaborative continent can go a long, long way to becoming an economic powerhouse.”
Source | Myjoyonline
