Ghana: IMF forecasts $12bn reserves, circa GHS 2 trillion GDP value by 2029
Recent projections by the International Monetary Fund (IMF) indicate Ghana’s gross international reserves is expected to grow from the current $5.1bn to $12bn by 2029.
Additionally, the country’s gross domestic product (GDP) value is also expected to grow to some GHS 1.94 trillion (approximately GHS 2 trillion) within the next five years – 2029.
Ghana’s GDP is anticipated to grow to GHS 1 trillion by the end of this year – 2024.
The new projections by the Fund are contained in its release on the Executive Board’s approval of Ghana’s $360m third tranche under the $3bn Extended Credit Facility programme.
Announcing the approval of the $360m third tranche, Deputy Managing Director of the IMF, Kenji Okamura, remarked, “Ghana’s performance under its ECF-supported reform program has been generally strong. The authorities’ strategy aimed at restoring macroeconomic stability and reducing debt vulnerabilities is paying off, with clear signs of stabilization emerging. Going forward, perseverance in macroeconomic policy adjustment and reforms is essential to fully restore macroeconomic stability and debt sustainability, while fostering a sustainable increase in economic growth and poverty reduction.”
“Ghana has made progress adjusting its fiscal position. Looking ahead, attaining the fiscal objectives under the Fund-supported program requires further mobilizing domestic revenue, streamlining public spending—including related to externally-funded expenditures, and finalizing Ghana’s comprehensive debt restructuring. The authorities’ strong debt restructuring efforts are paying off with the reaching of agreement on a Memorandum of Understanding with the Official Creditor Committee and an Agreement in Principle with bondholders,” he noted.
“Resolve in keeping the domestic revenue mobilization agenda on track and tightening expenditure commitment controls is critical to avoid policy slippages ahead of the December 2024 general elections. These efforts should be supported by continued progress in improving tax administration, strengthening expenditure control and management of arrears, enhancing fiscal rules and institutions, and improving SOEs management. Bolstering targeted social protection programs is needed to cushion the vulnerable from the impact of fiscal adjustment,” Mr Okamura added.
