The International Monetary Fund’s (IMF) Mission Chief for Ghana, Stéphane Roudet, has noted that his outfit has revised its projection for Ghana’s economic growth this year.
The Fund earlier projected that Ghana’s economy will grow 2.8 per cent this year and 4.4 per cent next year on the back of on-going reforms.
Stéphane Roudet has however noted that due to the sustained growth in the economy, the Fund projects a 3.1% growth for the country in 2024.
He made this known when he announced that the IMF Executive Board has completed the second review of Ghana’s 36-month Extended Credit Facility Arrangement.
This allows for the immediate disbursement of SDR 269.1 million (about US$360 million).
Ghana’s performance under the program has been generally strong, according to the Fund.
“All quantitative performance criteria for the second review and almost all indicative targets were met. Good progress is being made on the debt restructuring, and key structural reforms are advancing.”
“The authorities’ reform efforts are paying off. Growth has proven more resilient than expected, inflation has declined rapidly from its 2022 highs, and the fiscal and external positions have improved significantly,” the IMF noted.
On June 11, 2024, the authorities reached agreement with Ghana’s Official Creditor Committee (OCC) under the G20’s Common Framework on a Memorandum of Understanding (MoU) formalizing the agreement in principle on a debt treatment, which was reached in January 2024.
This agreement on a debt treatment, consistent with program parameters, provided the financing assurances necessary for the second review under the ECF Arrangement to be completed.
The authorities have also recently reached agreement in principle with representatives of Eurobond holders on a restructuring consistent with program parameters, subject to confirmation on comparability of treatment by the OCC.
Ghana’s primary fiscal balance improved by over 4 percent of GDP last year. Looking ahead, the authorities are committed to further advancing fiscal consolidation, including by achieving primary fiscal surpluses of ½ percent of GDP this year and 1½ percent of GDP in 2025.
These efforts are underpinned by reforms to bolster revenue mobilization and streamline non-priority expenditures, while expanding social protection programs to mitigate the impact of fiscal adjustment on the most vulnerable.
The authorities are also taking steps to strengthen tax administration, expenditure controls and management of arrears, fiscal rules and institutions, and SOEs management—including in the energy and cocoa sectors.