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Thursday, May 30, 2024

Ghana’s Economy Performing Better Than Forecast – IMF

Stéphane Roudet


The International Monetary Fund (IMF) has given positive assessments about the recent outlook of the economy, indicating that it has performed better than was previously forecasted.

IMF Mission Chief for Ghana, Stéphane Roudet, said this when he announced the staff-level agreement between the Fund and Ghana following the second review of the country’s economic programme.

In a statement issued on Saturday April 13, 2024, Roudet said, “Performance under the IMF-supported programme has been generally strong, with most quantitative targets met. Good progress has also been made on the key structural reform milestones.

“The authorities’ policies and reforms to restore macroeconomic stability and debt sustainability while laying the foundations for stronger and more inclusive growth are already generating positive results,” he added.

Commenting on the economy, the team indicated that economic activity in 2023 was more robust than initially envisaged, and growth projections for 2024 would accordingly be revised upward.

They lauded the country’s Monetary policy, indicating it had remained “appropriately tight, allowing for inflation to decline rapidly.

The statement further indicated that spending had remained within budget limits, while the government has significantly expanded social protection programmes to help mitigate the impact of the crisis on the most vulnerable.

Further, Mr. Roudet indicated that Ghana had met its non-oil revenue mobilisation target while making progress in implementing ambitious structural fiscal reforms to bolster domestic revenues, strengthen public financial and debt management, and enhance transparency.

Mr. Roudet also indicated that, “The external sector has improved significantly, with international reserve accumulation ahead of program objectives. Financial stability has been preserved, with banks posting solid profits in 2023.”

He added that the next key step for the country was to reach an agreement with its official bilateral creditors on a MoU consistent with the terms agreed in January 2024.

The IMF staff held the meetings with the Minister for Finance, Mohammed Amin Adam, the Governor of the Bank of Ghana (BoG), Ernest Addison, and their teams, as well as representatives from various government agencies from 2-12 April 2024 to discuss progress on reforms and officials’ policy priorities under the extended credit facility.

The staff-level agreement now needs the approval of the IMF management executive board, however, its approval is historically succeeded by the Board’s approval, indicating that Ghana is highly likely to receive its next funding support, and broadly signaling to the International Community the country’s financial resilience despite the shocks resulting from the effects of COVID-19 and the Russia-Ukraine war.

The support would bring the total IMF financial support disbursed under the arrangement to about US$1.56 million since May 2023.

A  Daily Guide Report

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