IMF revises Ghana’s growth upward to 3.1% in 2024

The International Monetary Fund has made significant observations regarding Ghana's economic growth trajectory, revising the country's growth projections upward to 3.1% in 2024. This positive adjustment comes on the heels of notable progress in Ghana's economic development, as pointed out by Stephane Roudet, the IMF mission chief for Ghana during a briefing. Roudet commended Ghana for achieving most of the key indicative targets set out for the country, underscoring the significant strides taken by the nation. The journey to this upgraded economic forecast has been marked by a comprehensive reform program initiated by Ghanaian authorities following a severe economic and financial crisis in 2022. The reform program aimed at restoring macroeconomic stability, ensuring debt sustainability, and laying the groundwork for a robust and inclusive recovery. The fruits of these efforts are now apparent as Ghana's economic landscape undergoes a transformation. One of the standout achievements highlighted by Roudet is Ghana's remarkable progress on the fiscal front. Through diligent fiscal adjustments, the government has managed to steer public finances towards sustainability. Noteworthy is the significant improvement in the government's primary balance, which saw a four-percentage-point improvement in GDP last year. This positive trajectory is set to continue this year with the country expected to post a primary balance surplus. The achievement has been facilitated by augmenting domestic revenue mobilization and enhancing public spending efficiency. Moreover, the Ghanaian government has demonstrated its commitment to safeguarding vulnerable segments of society during these fiscal adjustments. Initiatives such as the enhancement of benefits under the Living Empowerment Against Poverty program and increased allocations towards essential programs like school feeding signify the government's dedication to ensuring the welfare of its citizens. In addition to fiscal reforms, Ghana is also focused on bolstering its structural framework to fortify fiscal consolidation and enhance resilience against economic shocks. This initiative encompasses reforms in tax policy, revenue management, public financial management, and addressing inefficiencies in crucial sectors like energy and cocoa. The progress made in debt restructuring has been particularly significant, with key agreements reached with creditors and stakeholders. The Bank of Ghana's prudent monetary policy stance has played a pivotal role in driving down inflation and rebuilding international reserves, contributing to overall economic stability. Efforts to promote financial stability, create a conducive environment for private investment, and stimulate job creation are underway, in alignment with Ghana's economic reform agenda. The IMF's assessment of Ghana's performance under the Supported Programme has been positive, with Ghana meeting quantitative performance criteria and achieving significant progress on key structural milestones. The visible signs of economic stabilization, including more resilient economic growth, have prompted the IMF to revise Ghana's growth projection upwards from 2.8% to 3.1% for 2024. In conclusion, the IMF has reiterated its unwavering support for Ghana, underscoring the commitment to continue aiding the nation's recovery journey. The completion of the second review signifies a crucial milestone in Ghana's pursuit of economic stability and growth, with the ultimate goal of fostering a flourishing economy that uplifts all Ghanaians.