The International Monetary Fund (IMF) has confirmed that Ghana’s economy is recovering faster than anticipated, commending the managers of the country’s economy.
It noted that policies and reforms being undertaken by government and Bank of Ghana to restore macroeconomic stability and debt sustainability while laying the foundations for stronger and more inclusive growth are already generating positive results.
IMF’s Mission Chief for Ghana Mr. Stéphane Roudet noted that economic activity in 2023 was more robust than initially envisaged, and growth projections for 2024 will be revised upward.
He added that the monetary policy has remained appropriately tight, allowing for inflation to decline rapidly.
“Consistent with the authorities’ commitments under the IMF-supported programme, the fiscal primary balance on a commitment basis improved by over 4 percentage points of GDP [Gross Domestic Product] in 2023 and is on track to achieve a fiscal primary surplus of ½% of GDP in 2024. “Spending has remained within budget limits, while the authorities have significantly expanded social protection programmes to help mitigate the impact of the crisis on the most vulnerable.
“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,” Mr. Roudet added.
The IMF Chief Mission for Ghana made the observation when he announced that the Fund has reached a staff-level agreement with Ghana on the second review of Ghana’s 36-month Extended Credit Facility (ECF)-supported programme.
“I am pleased to announce that IMF staff and the Ghanaian authorities have reached a staff-level agreement on the second review of Ghana’s economic program under the Extended Credit Facility arrangement. This staff-level agreement is subject to IMF Management approval and Executive Board consideration once the necessary financing assurances have been received,” he stated.
$360 million for Ghana
Mr. Roudet noted that an agreement between the Ghanaian authorities and their official creditors on an MoU for debt treatment in line with program parameters would provide the needed financing assurances.
“Upon completion of the Executive Board review, Ghana would have access to SDR 269.1 million (about US$ 360 million), bringing the total IMF financial support disbursed under the arrangement since May 2023 to SDR 1,171.9 million (about US$ 1,560 million),” he announced.
Mr. Roudet underscored the urgency of this step, stating that Ghana’s strong progress hinges upon successfully reaching such agreements.
“Given Ghana’s strong progress under the IMF-supported program, the next key step for the country is to reach an agreement with its official bilateral creditors on an MoU consistent with the terms agreed in January 2024.”
He applauded Ghana for meeting 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.
