IMF endorses Ghana’s economy progress, urges more reforms

• Posted on October 7, 2024October 7, 2024
• by Nana Kwesi Coomson
• Comment

The International Monetary Fund (IMF) has given Ghana’s economy thumbs-up, citing significant progress in macroeconomic stability and debt sustainability.

However, the Fund emphasizes the need for continued implementation of the policy and reform agenda, particularly ahead of the 2024 general elections.

In a statement released after a recent visit, IMF Mission Chief Stéphane Roudet praised Ghana’s economic growth, which exceeded expectations in the first half of 2024.

The growth was driven primarily by the mining, construction, and information and communication sectors.

“Ghana’s economic growth in the first half of 2024 was much higher than initially envisaged,” Roudet stated.

“Inflation has continued to decline, and the fiscal and external positions have shown marked improvements.”

The IMF team also commended Ghana’s progress on debt restructuring, including the successful completion of the consent solicitation to restructure its Eurobonds.

Despite the progress, the IMF cautioned that Ghana must maintain its policy and reform efforts to ensure sustained economic stability.

“The authorities’ policy and reform efforts under the program have continued to deliver encouraging results,” Roudet noted.

“However, it is essential to continue implementing the policy and reform agenda, especially given the upcoming general elections.”

The IMF’s endorsement comes as Ghana prepares for the December 2024 polls, with the economy expected to be a key campaign issue.

Ghana’s government has committed to pursuing good-faith efforts to reach an agreement with other commercial external creditors on a debt treatment consistent with program parameters and the comparability of treatment principles.

The IMF staff-level agreement on the third review of Ghana’s economic program under the Extended Credit Facility arrangement is subject to IMF Management approval and Executive Board consideration.

Upon completion, Ghana would have access to SDR 269.1 million (about US$360 million).

BY Daniel Bampoe