The International Monetary Fund (IMF) Mission Chief for Ghana, Stéphane Roudet, has noted that Ghana is exceeding the expectations and targets set by the IMF within the framework of the programme.
He indicated that Ghana’s economy has reached its lowest point and is now poised for full recovery.
However, he noted that this projection hinges on the government’s continued implementation of the IMF program as it has been done over the past year.
“Ghana’s programme is delivering on its promises, and in fact, it is overdelivering,” the Mission Chief added.
“Growth is also doing better than what we have forecasted, and that is also influencing our decision to review our forecast,” he noted.
Mr Roudet made the comments while responding to questions in Washington DC, USA, posed by JOYBUSINESS about concerns regarding potential economic shocks due to global developments.
He stated that this development would prompt the IMF to review Ghana’s growth forecast for 2024, noting that inflation ended last year better than their projections.
“We are also surprised as to how growth has performed under Ghana’s programme” the Mission Chief added.
He said this was never evident, at the beginning of Ghana’s programme.
“The required revenue is being raised, the Bank of Ghana is also doing its part to ensure that, and inflation is brought under control and that is good for the programme”, he noted.
The Mission Chief for Ghana also added that “the external position has also been doing very well; fiscal position is also adjusting in line with the programme working and delivering on its promises.”
“Everything is moving in the right direction and this is something that was not considered at the beginning of the IMF programme.”
Mr. Roudet further explained that Ghana’s performance has been influenced by its commitment and seriousness in implementing the program. He emphasized that to fully restore confidence in Ghana’s economy, it will be crucial for various actors such as rating agencies and development partners to see continued full implementation of the IMF program.
“If the macroeconomic development unfolds as we planned in the IMF programme, then definitely we should expect them to respond as well as all agencies” the Mission Chief added.
“We are not only looking at the rating agencies responding, Ghanaians as well, domestic stakeholders, then everyone will realize and that will boost confidence in the economy.”
On growth and other projections captured in reports released during the IMF/World Bank spring meetings, Stéphane Roudet noted that those were based on “old assumptions.”
He indicated that the country should anticipate revised figures when they unveil the Regional Economic Outlook.
“We believe that the economy will perform better than had been projected” Ghana Stephan Roude reiterated.
He added, “Ghana has a growth potential average of 5 per cent going forward in the medium term.”
“Gradually, Ghana will be able to get back to its growth potential going forward” the Head of Mission concluded.