Ghana’s growth rate anticipated by the end of 2024 has been changed by the International Monetary Fund (IMF) from 2.8% to 3.1%.
The reforms Ghana is putting into place as part of the IMF program are responsible for this improvement, as they are greatly assisting the country’s economic recovery.
This development was emphasized at a joint press conference with the Bank of Ghana and the Finance Ministry by Stéphane Roudet, the head of the IMF mission to Ghana.
The declaration followed the ratification of the US$360 million third tranche of the US$3 billion bailout plan. He pointed out that the economy is beginning to stabilize and that it has proven to be more resilient than first thought.
“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 posited.
Mr. Roudet claims that the IMF has also noted improvements in the country’s fiscal and external positions, as well as a quicker-than-anticipated drop in inflation. Although things are looking positive in the longer term, there are still some dangers to the downside, especially with the general elections coming up.
“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.
Ghana has met all of the quantitative performance requirements for the second review as well as the majority of the indicative targets, demonstrating a generally solid performance under the IMF-supported program. Despite some delays, significant progress has also been made on important milestones related to structural transformation.
Speaking again at the joint press conference, Stéphane Roudet expressed hope that Ghana’s continued use of the Fund’s credit facility will produce fruitful outcomes in the upcoming months and years.
He recognized the nation’s economic difficulties but underlined that comprehensive adherence to the Fund’s suggested reforms will soon produce favorable results, citing the rise in important economic indicators as proof of the Post-COVID-19 Programme for Economic Growth’s (PC-PEG) effectiveness.
He acknowledged the hardships Ghanaians have as a result of currency devaluation in his concluding remarks, but he urged them to take into account the significant progress accomplished since the traumatic economic crisis in 2022.
Source: newsthemegh.com