Government policies drove Ghana’s economic recovery, not IMF – Dr Nyarko Otoo

The Deputy Secretary-General of the Trades Union Congress (TUC), Kwabena Nyarko Otoo, has argued that Ghana’s recent economic recovery has been driven largely by domestic government policy decisions rather than the influence of the International Monetary Fund (IMF).

Speaking on Newsfile on Saturday, May 16, Dr. Otoo stated that the country’s improving economic indicators reflect deliberate policy choices by government, combined with favourable global economic conditions, especially rising gold prices.

According to Dr. Otoo, Ghana benefited from a positive international environment at a critical period, particularly due to increased global gold prices which strengthened the country’s external earnings and supported economic stability.

“I am contributing that to a government that came with new choices and also was assisted by a very positive international environment where gold prices were rising,” he said.

He explained that the country’s economic recovery process had already begun before the IMF programme fully took effect, insisting that the improvement in inflation figures demonstrates that Ghana was already moving toward stabilization.

Dr. Otoo pointed out that inflation had peaked at around 54% in 2020 but had declined significantly before the IMF programme became operational.

“In fact, inflation was about 54% in 2020. By the time the IMF came in, it had come to about 23%. It had already dropped significantly, so we were on a certain trajectory towards recovery,” he noted.

He maintained that Ghana’s economic gains should not be overly credited to the IMF, arguing instead that local policy interventions and government strategies played the dominant role.

“We have done largely so by our own thoughts. It is not because of the IMF,” he stressed.

Dr. Otoo also raised concerns about Ghana’s long-standing dependence on IMF support, noting that the country has entered into nearly 18 IMF programmes over the years.

According to him, the recurring need for IMF assistance points to deeper structural weaknesses within the Ghanaian economy, particularly the country’s reliance on import liberalisation policies and external economic support.

“This country has had about 18 IMF programmes. Unless we change course in terms of policy, we will continue on the same trajectory,” he warned.

Economic analysts have often argued that Ghana’s dependence on imports, weak industrial base, and fiscal imbalances continue to expose the economy to external shocks and currency instability.

Dr. Otoo further argued that macroeconomic improvements alone should not be considered sufficient evidence of real economic progress unless they directly improve the lives of ordinary Ghanaians.

He stressed that key indicators such as job creation, wage growth, and reduced inequality are more meaningful measures of economic success than inflation or exchange rate figures alone.

“The question is whether these macroeconomic statistics are creating jobs and improving incomes. What is the level of wages? What is the level of inequality? These are the real metrics,” he said.

Touching on the proposed private sector participation in the Electricity Company of Ghana (ECG), Dr. Otoo argued that the policy should also be viewed as a domestically driven decision rather than an IMF-imposed condition.

According to him, Ghanaian policymakers are making strategic decisions internally while seeking external endorsement from international partners such as the IMF.

“If our recovery is driven by domestic decisions, then ECG private sector participation is also domestically driven. We are simply seeking IMF endorsement,” he added.

The issue of private sector participation in ECG continues to generate national debate, with supporters arguing it could improve efficiency and reduce operational losses, while critics fear potential job losses and increased utility costs.