The International Monetary Fund (IMF) Mission Chief for Ghana, Stéphane Roudet, has observed that Ghana’s economy is improving.
He says despite a challenging global economic environment, Ghana’s economic reforms are bearing fruit, and the economy is showing signs of stabilization.
“Growth has proven more resilient than it was envisaged, inflation is declining rapidly, the fiscal and external positions have improved, Bank of Ghana’s international reserves have been increasing and exchange rate volatility has decreased,” he said while providing an update on the country’s IMF-supported programme in a video recording shared on the Fund’s X platform.
He added “We are proud to continue supporting Ghana in restoring macroeconomic stability and debt sustainability and laying the foundation for more inclusive and stronger growth.”
Despite a challenging global economic environment, ??Ghana’s reforms are bearing fruit, and the economy is showing signs of stabilization. Stéphane Roudet, IMF Mission Chief for Ghana, provides an update on the country’s IMF-supported program. https://t.co/rrhwMOQeYp pic.twitter.com/lXfuFth873
— IMF (@IMFNews) January 19, 2024
The Executive Board of the International Monetary Fund (IMF) has announced that it has completed the first review of the $3 billion, 36-month Extended Credit Facility (ECF) arrangement, which was approved by the Board on May, 17, 2023 , as well as the 2023 Article IV Consultation with Ghana.
Ghana’s Finance Minister Ken Ofori-Atta explained that the IMF board’s approval of the first review of Ghana’s loan programme will engender the disbursement of about $600 million under its $3 billion bailout programme.
“It is with great honour that I can announce to you that earlier today, the International Monetary Fund endorsed the first review of our programme. This is a resounding affirmation that the programme is advancing steadily and our reform trajectory remains steadfast”.
“Consequently, the endorsement has unlocked a $600 million disbursement from the IMF and will pave the way for an additional $300 million disbursement from the World Bank under the development policy operation financing,” he said.
It would be recalled that the conclusion of the Executive Board’s discussion, Mr. Bo Li, Deputy Managing Director and Acting Chair, issued the following statement:
“Ghana’s economic performance has been marked by significant volatility over the years. Most recently, severe external shocks compounded pre-existing fiscal and debt vulnerabilities, leading to acute economic and financial pressures in 2022. The authorities’ efforts to reorient macroeconomic policies, restructure debt, and initiate wide ranging reforms are already generating positive results, with growth more resilient than initially envisaged, inflation declining, the fiscal and external positions improving, and international reserves increasing.
“Fully and durably restoring macroeconomic stability and debt sustainability and fostering higher and more inclusive growth require steadfast policy and reform implementation. The government‘s plans to further reduce deficits by mobilizing additional domestic revenue and streamlining expenditure and to finalize its comprehensive debt restructuring are critical to underpin debt sustainability and ease financing constraints. Continued efforts to protect the vulnerable and to create space for higher social and development spending are also key. Reforms to improve tax administration, strengthen expenditure control and management of arrears, enhance fiscal rules and institutions, and improve SOEs management are needed to ensure lasting adjustment.
Mr Ofori-Atta, said that the government will implement strong reforms to support fiscal consolidation and economic growth agenda.
He said this during the joint press conference organized by the Ministry of Finance, the IMF, and the Bank of Ghana on Friday, January 19 on the $ 600 million second tranche of the $3billion programme with the fund.
“An ambitious structural reforms will be implemented in the areas of tax policy for the financial management, energy, and cocoa sectors to support our financial consolidation and growth agenda,” Mr Ken Ofori-Atta, said.
He further expressed confidence that the second tranche of $600 million from the Fund will be disbursed in no time.
Mr Ofori-Atta explained that the IMF board’s approval of the first review of Ghana’s loan programme will engender the disbursement of about $600 million under its $3 billion bailout programme.
“It is with great honour that I can announce to you that earlier today, the International Monetary Fund endorsed the first review of our programme. This is a resounding affirmation that the programme is advancing steadily and our reform trajectory remains steadfast”.
“Consequently, the endorsement has unlocked a $600 million disbursement from the IMF and will pave the way for an additional $300 million disbursement from the World Bank under the development policy operation financing,” he said.