IMF Gives Thumbs Up to Ghana for Economic Management

July 14, 2024

(3 Minutes Read)

The IMF, in a press release, highlighted Ghana’s strong performance, stating that all key targets for the second program review were met. It said inflation, a major concern last year, has fallen significantly, while the government’s fiscal position and external finances have improved.

The International Monetary Fund (IMF) has given Ghana a positive thumbs-up after approving a disbursement of around $360 million following a successful review of the country’s economic reform program.

This news comes after Ghana’s government implemented a series of measures aimed at tackling economic challenges faced in 2022. The IMF-backed program focuses on restoring stability and reducing debt while laying the groundwork for future growth.

However, the IMF cautioned that maintaining the current pace of reforms is crucial. It said upcoming elections in December could pose a risk of policy slippages, so staying committed to fiscal consolidation remains important.

However, it cautioned that although the medium-term outlook remains favorable, it is subject to downside risks, including those related to the upcoming general elections.

The IMF said that the West African country has to shift towards creating a business-friendly environment to attract private sector investment. This, coupled with continued reforms in governance and transparency, is seen as essential for boosting long-term economic growth and reducing poverty.

The IMF emphasized the need for continued fiscal discipline, particularly in the lead-up to the elections. Additionally, it said maintaining a tight monetary policy and strengthening the financial sector will be critical for Ghana’s economic well-being.