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Why Ghana needs IMF help

The recent sharp widening of Ghana’s twin budget and current account deficits has fuelled speculation that the country may require some external help to stave off a fiscal and balance of payments crisis. For our part, we think that Ghana will probably now turn to the IMF over the next 6-12 months, with the most likely course of action being an agreement for technical assistance or a flexible credit line. In this scenario, a crisis should be averted, but growth will slow sharply.

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