IMF Mission Chief declares Ghana’s economic woes over, praises program performance

Ghana’s troubled economy has turned the corner and seen the worst, according to the International Monetary Fund’s (IMF) Mission Chief for the country, Stéphane Roudet.

He expressed optimism that the nation is now firmly set on the path to full recovery, provided the government maintains its commitment to implementing the IMF program rigorously.

“If the government continues to implement the IMF program the way it has been done over the past year, then we can say that we have now seen the worst for Ghana’s economy,” Roudet stated, allaying fears of potential shocks from global economic developments derailing the recovery process.

The IMF official dismissed concerns that the current economic rebound might be short-lived, underscoring that restoring full macroeconomic stability hinges on the strict execution of the program by the authorities.

Remarkably, Roudet revealed that Ghana’s performance under the program has exceeded expectations, prompting the IMF to review its growth forecast for 2024 upwards.

“Ghana is overperforming under the IMF program, and that is good. Ghana’s program is delivering on its promises and, in fact, it is over-delivering,” he confirmed.

Roudet highlighted several positive indicators, including better-than-projected inflation figures by the end of 2022, a surprising growth trajectory, and the government’s success in raising the required revenue.

He also commended the Bank of Ghana’s efforts to control inflation and the country’s improving external and fiscal positions, stating, “Everything is moving in the right direction, and this is something that was not considered at the beginning of the IMF program.”

The Mission Chief attributed this commendable performance to Ghana’s unwavering commitment and seriousness in implementing the program, expressing confidence that the country’s growth potential average 5% in the medium term.

However, Roudet cautioned that fully restoring confidence in Ghana’s economy, as perceived by rating agencies, development partners, and domestic stakeholders, will hinge on the continued steadfast implementation of the IMF program going forward.

As the IMF prepares to launch its Regional Economic Outlook, Roudet revealed that previous projections were based on “old assumptions,” suggesting that Ghana should brace for revised, more favourable numbers reflecting the economy’s better-than-anticipated performance.