Policies and reforms to restore macroeconomic stability is positive – IMF to Ghana

The International Monetary Fund has applauded the government and the Bank of Gana for the good progress made on the key structural reform milestones, saying, their policies and reforms to restore macroeconomic stability and debt sustainability while laying the foundations for stronger and more inclusive growth are already generating positive results.

Announcing the Second Review of the Extended Credit Facility with Ghana, IMF Mission Chief for Ghana, Stephane Roudet said economic activity in 2023 was more robust than initially envisaged, and growth projections for 2024 will be revised upward.

Again, monetary policy has remained appropriately tight, allowing for inflation to decline rapidly.

On the fiscal front, Mr. Roudet said “Consistent with the authorities’ commitments under the IMF-supported programme, the fiscal primary balance on a commitment basis improved by over 4 percentage points of GDP [Gross Domestic Product] in 2023 and is on track to achieve a fiscal primary surplus of ½% of GDP in 2024. Spending has remained within budget limits, while the authorities have significantly expanded social protection programmes to help mitigate the impact of the crisis on the most vulnerable”. He added that Ghana has met its non-oil revenue mobilisation target, while making progress in implementing ambitious structural fiscal reforms to bolster domestic revenues, strengthen public financial and debt management, and enhance transparency.

“The external sector has improved significantly, with international reserve accumulation ahead of program objectives. Financial stability has been preserved, with banks posting solid profits in 2023”, he continued.

He continued that given Ghana's strong progress under the IMF-supported programme, the next key step for the country is to reach an agreement with its official bilateral creditors on a Memorandum of Understanding consistent with the terms agreed in January 2024.

“We look forward to the authorities’ continued efforts to reach an agreement with all creditors in line with program parameters”, he concluded.