The International Monetary Fund (IMF) has expressed confidence in the Ghanaian economy, acknowledging that it is displaying signs of stabilization. However, the IMF also highlighted the existence of persistent challenges that require attention.
Following a recent visit to Ghana, the IMF staff team leader, Stéphane Roudet, issued a statement emphasizing certain positive developments. Roudet noted that inflation has eased, international reserves have grown, and the exchange rate has become more stable. Furthermore, the Ghanaian authorities have demonstrated progress in fulfilling key commitments outlined in the Fund-supported program.
Nevertheless, Roudet underscored the remaining challenges, which include high unemployment rates, a substantial informal sector, and weak infrastructure. He urged the government to persist in implementing reforms that can effectively address these issues.
“During the visit, we discussed recent macroeconomic developments. Against a complex global economic backdrop, the Ghanaian economy is showing signs of stabilization, with softening inflation, an increase in international reserves, and a less volatile exchange rate,” stated Mr. Roudet.
“We also took stock of the authorities’ progress in meeting key commitments under the Fund-supported program. These will be formally assessed in the context of the first review of the Extended Credit Facility arrangement, which is expected to be undertaken in the Autumn. In discussing progress on the debt restructuring operations, we reiterated that timely restructuring agreements with creditors are essential to secure the expected benefits of the Fund-supported program.”
The IMF staff conducted meetings with several Ghanaian officials and stakeholders, including President Akufo Addo, Vice President Bawumia, Finance Minister Ofori-Atta, and Bank of Ghana Governor Addison. They also engaged with representatives from government agencies, the Parliament’s Finance Committee, the private sector, and civil society. The IMF expressed appreciation for the constructive engagement and support received during the mission.
The Ghanaian government welcomed the comments from the IMF. Finance Minister Ken Ofori-Atta affirmed the government’s commitment to continue implementing reforms aimed at improving the economy.
This IMF visit was part of the regular engagements within Ghana’s $3 billion loan program, which was approved in May. Ghana seeks to restructure around $20 billion of its total external debt, which amounts to approximately $30 billion, under the Group of 20’s Common Framework platform. The first formal review of the program is expected to take place in September.
