Ghana’s once-struggling economy has made significant strides and appears to have weathered its most challenging phase, as per the International Monetary Fund’s (IMF) Mission Chief for the country, Stéphane Roudet,
Roudet conveyed confidence that Ghana is now firmly headed towards complete recovery, contingent upon the government’s unwavering dedication to rigorously executing the IMF program.
“If the government continues to implement the IMF program the way it has been done over the past year, then we can say that we have now seen the worst for Ghana’s economy,” Roudet stated, allaying fears of potential shocks from global economic developments derailing the recovery process.
The IMF representative brushed aside worries about the potential short-lived nature of the current economic resurgence, emphasizing that achieving complete macroeconomic stability depends on the diligent implementation of the program by the government.
Notably, Roudet disclosed that Ghana has surpassed expectations in its performance under the program, leading the IMF to revise its growth projection for 2024 upward.
“Ghana is overperforming under the IMF program, and that is good. Ghana’s program is delivering on its promises and, in fact, it is over-delivering,” he confirmed.
Roudet pointed out several encouraging signs, such as inflation figures at the end of 2022 surpassing projections, an unexpected growth path, and the government’s achievements in generating necessary revenue.
Additionally, he praised the Bank of Ghana for its actions to manage inflation and noted the country’s strengthening external and fiscal positions.
‘Everything is moving in the right direction, and this is something that was not considered at the beginning of the IMF program.”
The Mission Chief attributed Ghana’s commendable performance to its steadfast commitment and seriousness in implementing the program, expressing confidence that the country’s growth potential could average 5% in the medium term.
However, Roudet cautioned that fully restoring confidence in Ghana’s economy, as perceived by rating agencies, development partners, and domestic stakeholders, will depend on the continued steadfast implementation of the IMF program going forward.
As the IMF prepares to launch its Regional Economic Outlook, Roudet revealed that previous projections were based on “old assumptions,” suggesting that Ghana should anticipate revised, more favorable numbers reflecting the economy’s better-than-anticipated performance.