IMF projects 3% GDP growth rate for Ghana in 2024

Ghana's economic landscape has been under scrutiny as the International Monetary Fund (IMF) projects a 3 per cent growth rate for the country in 2024. This growth projection comes alongside a forecasted end-of-year inflation rate of 19.5 per cent. Benjamin Boachie, Chief Economist at Secondstax, recently shared his insights on these forecasts during an interview on CNBC Africa. Boachie expressed optimism about Ghana meeting and even exceeding these targets. He highlighted that Ghana's actual growth may surpass the projected figures due to years of underestimated economic performance. He pointed out that the country's economy is regaining strength, with both the IMF and the World Bank readjusting their forecasts to align with Ghana's improving economic landscape. Discussing inflation, Boachie acknowledged the bumpy nature of managing inflation rates. He emphasized the importance of maintaining ultra-restrictive financial conditions to keep inflation in check. Despite some fluctuations in recent readings, Boachie remained confident that Ghana could sustain a downward trajectory in inflation rates, provided the National Planning Committee (NPC) continues its vigilant approach. Looking ahead, Boachie shared insights on the upcoming Monetary Policy Committee (MPC) meeting, highlighting the significance of addressing both imported and domestic inflation. He anticipated a favorable outlook for Ghana's inflation, citing global trends and the country's policy stance as key factors driving the inflation forecast. Shifting focus to Ghana's debt obligations, Boachie discussed the resumption of Eurobond payments and expressed confidence in the country's ability to meet its financial commitments. With successful debt restructuring efforts across various fronts, Boachie reassured that debt payments should not pose a significant challenge in the near to medium term. However, Boachie expressed concerns about the depreciation of the Ghanaian Cedi against the US Dollar, noting a year-to-date decline of around 35 per cent. While acknowledging challenges in the currency market, he emphasized that Ghana's position was relatively stable compared to other African countries. Boachie also touched on the impact of trading partners and upcoming elections on Ghana's budgetary benchmarks and currency stability, highlighting the importance of maintaining sufficient reserves to navigate potential economic shifts. In conclusion, the outlook for Ghana's economy presents a mix of optimism and caution. While growth projections and inflation forecasts paint a positive picture, currency depreciation and external factors pose challenges. As Ghana moves towards 2024, prudent fiscal policies, strategic planning, and effective management of economic variables will be crucial in sustaining its economic momentum.