Ghana's GDP growth to reach 5% beyond 2024 - IMF projects

The International Monetary Fund (IMF) has projected that Ghana's Gross Domestic Product (GDP) growth will gradually increase to its potential level of about 5.0% beyond 2024.

This forecast aligns with predictions from various international research institutions.

According to the IMF's Country Report on Ghana, the macroeconomic outlook remains positive despite challenges from ongoing fiscal consolidation and a prolonged dry spell.

The strong performance of real GDP growth in the second quarter of 2024 has led the IMF to revise its growth projection for the year upward to 4.0%, from the previous estimate of 3.1% during the second Economic Credit Facility (ECF) review.

“Continued tight monetary policy will bring inflation back to the Bank of Ghana’s target band (8±2 percent) by end-2025,” the Fund said.

This increase is primarily due to price pressures from a weaker cedi and the dry spell.

The Fund expects that continued tight monetary policy will bring inflation back to the Bank of Ghana's target band of 8±2 percent by the end of 2025.

Further progress in fiscal consolidation and the completion of debt restructuring are expected to ensure that Ghana's public debt remains on a sustainable path.

The current account deficit is projected to stay balanced until 2026, with international reserves reaching three months of import coverage.

ID/AE

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