Ghana's economic growth rate not revised down to 1.2% - IMF clarifies

The International Monetary Fund (IMF) Resident Representative in Ghana, Dr. Leandro Medina, has clarified that Ghana's economic growth projection for 2023 hasn't been reduced to 1.2%, as previously reported.

According to Dr. Medina, the 1.2% figure was based on older data and didn't take into account recent positive economic performance, with the country averaging a growth rate of 3.2% in the first two quarters of the year.

Dr. Medina highlighted that based on the findings of the first ECF review mission conducted by the IMF, the growth projection for 2023 is expected to be revised upwards from the previously assumed 1.5%.

“The latest IMF World Economic Outlook projection (1.2 percent growth for 2023) is based on an old vintage of Fund staff projections. In particular, it does not take into account the recent data releases that showed a higher growth rate than expected at the beginning of the program (averaging 3.2 percent for the first two quarters).

“At the current juncture, and based on the findings of the first ECF review mission that just ended last week, the IMF staff assessment is that the growth projection for 2023 will be revised up from the 1.5 percent previously assumed," he said.

Meanwhile, speaking to Bernard Avle on Monday, October 9, on CitiTV’s Point of View, Stéphane Roudet, the IMF's Mission Chief to Ghana, commended Ghana's robust economic recovery.

The IMF had initially projected Ghana's economy to grow at a rate of 1.5% by the end of 2023. However, data from the first half of the year indicates that the country's economy is expanding at a much higher rate, approximately 3%.

He indicated that this substantial outperformance is encouraging and is likely to facilitate the smooth disbursement of the second tranche of $3 billion credit facility from the IMF to Ghana.

“Ghana’s economic activities, I have to say, have surprised us on the outside. You will remember that in the programme, we were projecting economic growth of 1.5 percent for this year, and now we have the outcome for the first half of the year, and we are about 3 percent, so you can see that there are signs that are encouraging," he said.

ID/MA

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