IMF Constraints and Debt Default Slowed Ghana’s Job Creation Engine – Terkper
Former Finance Minister and Presidential Advisor on the Economy, Seth Terkper, has stated that Ghana’s ability to create jobs was significantly weakened by the combined impact of IMF programme constraints and the country’s recent debt default. According to him, these factors slowed down what he described as the nation’s “job engine,” limiting the pace of economic expansion and employment growth.
Speaking on Ghana’s economic trajectory, Terkper explained that while IMF programmes provide stability and policy direction during crises, they also come with strict fiscal measures that can constrain public spending. He noted that these restrictions often affect capital investments and large-scale development initiatives, which are critical drivers of job creation in sectors such as infrastructure and industry.
He further pointed out that Ghana’s debt default compounded the situation by restricting access to international capital markets. This limited the government’s ability to finance key projects and support private sector growth, thereby slowing employment generation across the economy.
Despite these setbacks, Terkper acknowledged that the IMF programme has played a role in restoring a level of macroeconomic stability, helping the country move from a period of severe economic distress to a phase of cautious recovery. However, he stressed that stability alone is not enough if it does not translate into tangible opportunities for citizens.
He emphasized the need for a balanced approach—one that maintains fiscal discipline while deliberately investing in productive sectors to reignite job creation. Ultimately, he argued that Ghana’s recovery strategy must go beyond stabilisation and focus on rebuilding a resilient, job-driven economy.
Source: MyJoyOnline
