Ghana faces up to economic woes by turning to the IMF

Ghana’s authorities bowed to the inevitable on Sunday by formally requesting help from the IMF in dealing with the country’s enormous twin budget and current account deficits. The most likely form of assistance appears to be a Stand-By Arrangement, which would include conditions to substantially tighten fiscal policy over the next few years. As such, while the public finances are likely to be brought onto a more sustainable footing, a period of weaker economic growth now looms.