IMF executive board concludes 2023 Article IV consultation with Ghana

The International Monetary Fund (IMF) recently announced that Ghana has successfully met all quantitative performance criteria for the first review of the Extended Credit Facility Arrangement. Almost all indicative targets and structural benchmarks were also achieved, signaling a positive outlook for the Ghanaian economy. Stephane Roudet, the IMF Mission Chief for Ghana, highlighted the strong performance under the program during a recent interview. Roudet emphasized that Ghana has made significant progress in various key areas. The country's budgetary performance was strong, meeting the targeted deficit. Inflation was well within the set objectives, even falling below expectations at the end of December. This is particularly noteworthy considering the significant decrease from 54% at the end of the previous year to 23% in December 2023. Moreover, Ghana excelled in meeting nine structural benchmarks, indicating a commitment to essential reforms. These reforms have started to yield positive results, leading to signs of stabilization in the Ghanaian economy. Key indicators such as fiscal position, external position, and international reserves have shown improvement. Economic activity is also performing better than anticipated, prompting a revision of the growth projection for 2023 from 1.5% to 2.3%. Looking ahead, the IMF projects a GDP growth rate of 2.7% to 2.8% for 2024. Maintaining this positive trajectory hinges on steadfast policy implementation and continued focus on sustainability, inclusive economic growth, and poverty reduction. Roudet reiterated the importance of staying the course with reforms to ensure that progress is sustained. The $600 million loan payout from the IMF is a significant boost to Ghana's economy. It marks the second tranche under the IMF arrangement, bringing the total disbursement to almost $1.2 billion since the program's approval in May last year. Additionally, the World Bank is set to provide another $300 million in funding, with potential for further assistance in the coming weeks. Roudet highlighted the collaborative efforts of international partners in supporting Ghana's economic recovery. Despite the challenges Ghana has faced in restructuring its debt, Roudet expressed optimism about the progress made so far. He praised the successful completion of domestic debt restructuring and the recent agreement with official bilateral creditors. Looking ahead, Ghana aims to engage with external private creditors with the goal of achieving favorable deals for all parties involved. In conclusion, Ghana's economic outlook appears promising, with positive indicators pointing towards sustained growth and stability. The country's commitment to implementing reforms and securing support from international partners bodes well for its future economic prospects.