IMF adjusts Ghana’s 2024 GDP growth forecast to 3.1%

The International Monetary Fund (IMF) has revised Ghana’s growth rate forecast from 2.8% to 3.1% by the end of 2024.

This positive adjustment is attributed to the reforms Ghana is implementing under the IMF programme, which are significantly aiding its economic recovery.

Stéphane Roudet, the IMF mission chief to Ghana, highlighted this development at a joint press conference with the Bank of Ghana and the Finance Ministry.

The announcement came after the approval of the third tranche, amounting to US$360 million, of the US$3 billion bailout package. He noted that signs of economic stabilization are emerging and that economic resilience has been stronger than initially expected.

“Signs of economic stabilization are emerging. For example, economic stabilization has proven to be more resilient than initially envisaged. Therefore, we are revising our growth projection up from 2.8 to 3.1 percent for 2024,” he stated.

According to Mr Roudet, the IMF has also observed a faster-than-expected decline in inflation and improvements in both fiscal and external positions. While the medium-term outlook remains favorable, there are potential downside risks, particularly related to the upcoming general elections.

Nonetheless, Ghana’s performance under the IMF-supported program has been generally strong, meeting all quantitative performance criteria for the second review and most indicative targets. Significant progress has also been made on key structural reform milestones despite some delays.

Stéphane Roudet speaking further during the joint press briefing, expressed optimism that the ongoing credit facility between the Fund and Ghana will yield positive results in the coming months and years.

He acknowledged the economic challenges facing the country but emphasized that holistic adherence to the Fund’s proposed reforms will soon bring positive outcomes, pointing out the improvement in key economic indicators as evidence of the success of the Post-COVID-19 Programme for Economic Growth (PC-PEG).

He concluded his remarks by recognizing the frustrations Ghanaians face due to currency depreciation but urged them to consider the substantial progress made since the painful economic crisis in 2022.

“We understand the frustration of Ghanaians when the currency depreciates and we collectively do but what I think is important is for us to remember where we are coming from. We are coming from a very painful crisis in 2022 and what has been achieved so far is quite remarkable,” he noted, stressing the importance of focusing on the positive direction of the country’s economic trajectory.