Accra, 13th April -In an IMF joint press conference on the outcome of the 2nd Review of the IMF-supported Post Covid-19 for Economic Growth (PC-PEG), Ghana showcased the progress made under the program. The PC-PEG, approved nearly a year ago, aims to restore macroeconomic stability, build resilience, and foster inclusive growth.
In his remarks, the Minister for Finance, Dr. Mohammed Amin Adam highlighted that, the effective implementation of the program had led to relative macroeconomic stability and signs of economic recovery.
“Ghana has successfully implemented various measures, including fiscal consolidation, revenue mobilization, expenditure rationalization, tight monetary policies, and structural reforms in key sectors of the economy” he added.
According to Dr. Amin Adam, the results of these efforts have been promising and stated that GDP growth exceeded expectations, with a growth rate of 2.9% at the end of 2023, surpassing the original target of 1.5% and the revised target of 2.3%. Inflation, which had peaked at 54.1% in December 2022, has seen a significant decline of 30.9 percentage points, reaching 23.2% by the end of December 2023. In early 2024, inflation continued to show positive progress, maintaining a rate of 23.2% in February but slightly increasing to 25.8% in March 2024.
These achievements, he opined, demonstrated the commitment of Ghana to fiscal and debt sustainability, as well as the pursuit of inclusive growth and revealed that, the PC-PEG programme was instrumental in laying the foundation for a stronger and more resilient economy while prioritizing the well-being of the poor and vulnerable.
“I also promised that I will hold the line when it comes to expenditure in this election year, as most election years’ expenditures have been reckless. I will hold the line this year and ensure that we do not embark on extra budgetary spending to ensure that the negotiated fiscal balances are met by the end of the fiscal year.” The MP for Karaga ensured Ghanaians as he climaxed his speech.
The IMF led by Mr. Stèphane Roudet, expressed their satisfaction with Ghana's performance under the programme and highlighted that, most of the quantitative targets set by the authorities were met, and significant progress has been made on key structural reform milestones. The IMF also commended Ghana's strong policy and reform efforts, stating that these efforts are already yielding positive results.
The IMF mission has been in Accra for several weeks, working closely with the Ghanaian authorities to assess the country's performance under the IMF-supported program. The programme, which was approved by the IMF executive board in May 2023, aims to support Ghana's economic reforms and address key challenges in the country's fiscal and monetary policies.
As part of the agreement, once the IMF executive board completes the second review of the program, Ghana will have access to approximately $360 million in financial support. This additional funding will further strengthen Ghana's economic stability and help facilitate the implementation of crucial reforms.
The IMF's support comes at a critical time for Ghana, as the country aims to address various economic challenges and promote sustainable growth. The financial assistance provided by the IMF will help Ghana in its efforts to create a more resilient and inclusive economy.
The agreement is subject to the approval of the IMF management and the executive board, pending the receipt of necessary financing assurances and an agreement between the Ghanaian authorities and their official creditors on a memorandum of understanding.
The IMF's staff level agreement on the second review of Ghana's program is a positive development for the country's economic future. Ghana's commitment to implementing key reforms and their strong performance under the program have been recognized by the IMF. With the additional financial support, Ghana is well-positioned to continue its journey towards sustainable economic growth and development.