IMF revises Ghana’s growth target from 2.8% to 3.1% for 2024

• Posted on July 2, 2024July 2, 2024
• by Nana Kwesi Coomson
• Comment

The International Monetary Fund (IMF) has revised Ghana’s growth rate forecast from 2.8% to 3.1% by the end of 2024.

This adjustment is attributed to the reforms Ghana is implementing under the IMF programme, which significantly supports its economic recovery.

The IMF also believes that if Ghana adheres to the programme’s conditions, the recovery could be faster than previously projected.

Stéphane Roudet, the IMF mission chief to Ghana, discussed this at a joint press conference with the Bank of Ghana and the Finance Ministry, following the approval of the third tranche, amounting to US$ 360 million, of the US$ 3 billion bailout package.

“Signs of economic stabilization are emerging. For example, economic stabilization has proven to be more resilient than initially envisaged. Therefore, we are revising our growth projection up from 2.8 to 3.1 percent for 2024.”

The Fund adds that inflation has been declining at a faster pace, and the fiscal and external positions improving.

“The medium-term outlook remains favourable but subject to downside risks—including those related to the upcoming general elections. Ghana’s performance under the IMF-supported program has been generally strong. All quantitative performance criteria for the second review and almost all indicative targets were met. Good progress has also been made on the key structural reform milestones, despite some delays”, the IMF Mission Chief added.

Stéphane Roudet has expressed optimism that the current credit facility between the Fund and Ghana will yield positive results in the coming months and years.

Mr. Roudet acknowledged the current economic challenges facing the country and intimated that with Ghana holistically following the Fund’s proposed reforms, the country will soon see positive results.

In his closing remarks at a joint press conference with the Ministry of Finance and the Bank of Ghana on July 1, the IMF chief said Ghana’s key economic indicators are improving, which he said is a testament to the outcome of the Post-COVID-19 Programme for Economic Growth (PC-PEG).

“We understand the frustration of Ghanaians when the currency depreciates and we collectively do but what I think is important is for us to remember where we are coming from. We are coming from a very painful crisis in 2022 and what has been achieved so far is quite remarkable and so what is important is the direction of travel.

-Citi