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ENSURING AND SUSTAINING
MACRO-ECONOMIC STABILITY
2010 Consultative Group / Annual Partnership Meeting
Venue: La Palm Royal Beach Hotel, Accra
Date: 23rd September 2010 - Technical Meeting
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Overarching Goal for the Medium Term
To achieve and sustain macro-economic
stability while placing the economy on a
path of higher growth, in order to attain
middle-income status by 2020 and also to
achieve the Millennium Development Goals
(MDGs)
It also aimed at reducing poverty through a
pro-poor, export-led growth strategy based
on modernizing agriculture and linking it to
industry in an emerging oil and gas economy
The Policy Context & Issues
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High and unsustainable fiscal deficits
Poor expenditure management and revenue administration
High inflation and interest rates;
Exchange rate instability
Low foreign exchange cover
Ineffective debt management
Weak institutional capacity for fiscal policy management
Inability to link resources to outcomes
Inefficient management of the wage bill
Uneven sectoral growth
Key Areas of Policy Focus
• Monetary policy management and
financial sector reforms
• Fiscal policy
• International trade & finance
• Public sector reforms/modernization
• Economic policy management
(with the view to addressing employment and
earnings)
Monetary policy management
Aimed at promoting sound and competitive banking and
financial system which can support the growth strategy
The policy objectives are:
 Ensure price and exchange rate stability
• Intensify competition in the financial system to reduce high
interest rate spread and ensure competitive rates
• Strengthen the foreign exchange market
 Deepen the capital markets
• Implement schemes to increase long-term savings/funds
• Encourage the further development of the market for bonds and
other long-term securities
 Create a more diversified financial sector and
improve access to financial service
• Introduce discounted tax rate to financial institutions that lead to
priority sectors of business such as Agriculture, Industry, service,
Micro, Small and Medium Enterprises(MSME’s)
• Strengthen the central securities depository system
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Fiscal policy management
Aimed at maintaining fiscal deficits at sustainable
levels through more efficient revenue mobilization,
efficient expenditure and debt management
The policy objectives are:
Improve fiscal resource mobilization
• Minimize revenue collection leakages
• Institute tax reforms with emphasis on domestic taxes, enhancing
tax expenditures
Improve public expenditure management
• Introduce budget law
• Continue with treasury management reforms
Promote effective debt management
• Maintain public debt as sustainable levels
• Employ appropriate debt instrument to reduce the market and
refinancing risks associated with debt portfolio
Institute mechanisms to manage external shocks
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• Maintain stable reserves
International trade management
Aimed at emphasizing exports diversification and sustainable
levels of foreign reserves through international
competitiveness in a well managed exchange rate system
The policy objectives are:
 Improve export competitiveness
• Maintain competitive real exchange rates
• Improve import/export regime
 Diversify and increase exports and imports
markets
• Promote new goods and services
• Continue to take full advantage of Preferential Access to markets,
such as AGOA, etc
 Accelerate economic integration with other
regional and/or sub regional states
• Implement the ECOWAS community development program
• Strengthen links between industrial and trade policies
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Economic Policy Management
Aimed at developing, strengthening, monitoring and
evaluating economic planning and forecasting to
address macroeconomic and structural weaknesses
The policy objectives are:
 Strengthen economic planning and forecasting to
ensure complementary development of economic
sectors
• Monitor and evaluate economic performance to address
macroeconomic weaknesses
 Formulate and Implement sound social policies
• Develop and utilise macroeconomic models
• Produce research papers for policy analysis and economic
decision making
Enabling Environment
(Soft issues in development)
• Values for national development
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Respect for time
Hard work
Dependability
Patriotism
Honesty
Tolerance
Volunteerism
Spirit of community
Productivity enhancement
Etc.
THE END.