IMF African Director Clarifies Ghana’s 2024 GDP Growth Rate Figure; Affirms Growth Rate at 4%
Director of the African Department at the International Monetary Fund (IMF), Abebe Selassie, has made some clarifications pertaining to the end-2024 gross domestic product (GDP) growth rates projection for Ghana.
An IMF Mission led by Stéphane Roudet to undertake the second review of Ghana’s $3bn IMF Programme in July to enable the country to gain access to the third tranche of the loan facility, had revised Ghana’s GDP growth rate forecast from 2.8% to 3.1% by the end of 2024.
However, current data provided by the IMF at the ongoing IMF/World Bank Annual Meetings forecasts a 4% GDP growth rate for Ghana at the end of the 2024 fiscal year based on updated projections by the Fund.
“The 3.1% GDP growth forecast was submitted by IMF Mission to Accra in mid to late August as per the deadlines given by the IMF submission of data which was mid-October where we have done updates on the projections. And so as it stands now our projections for Ghana’s growth rate at end-2024 is 4%,” he remarked, speaking during a press briefing on Friday, October 25.
According to the IMF African Director, the upward adjustment of the GDP growth for Ghana at end-2024 is attributed to the reforms Ghana is implementing under the IMF programme, which are significantly aiding its economic recovery.
IMF Mission adjusts upwards Ghana’s 2024 GDP growth forecast to 3.1%
The International Monetary Fund (IMF) Mission to Ghana revised the country’s growth rate forecast from 2.8% to 3.1% by the end of 2024.
Stéphane Roudet, the IMF mission chief to Ghana, mentioned the upward adjustment in growth rate at a joint press conference with the Bank of Ghana and the Finance Ministry in July.
The announcement came after the approval of the third tranche, amounting to US$360 million, of the US$3 billion bailout package. He noted that signs of economic stabilization are emerging and that economic resilience has been stronger than initially expected.
“Signs of economic stabilization are emerging. For example, economic stabilization has proven to be more resilient than initially envisaged. Therefore, we are revising our growth projection up from 2.8 to 3.1 percent for 2024,” he posited.
According to Mr Roudet, the IMF has also observed a faster-than-expected decline in inflation and improvements in both fiscal and external positions.
Stéphane Roudet speaking further during the joint press briefing, expressed optimism that the ongoing credit facility between the Fund and Ghana will yield positive results in the coming months and years.
He acknowledged the economic challenges facing the country but emphasized that holistic adherence to the Fund’s proposed reforms will soon bring positive outcomes, pointing out the improvement in key economic indicators as evidence of the success of the Post-COVID-19 Programme for Economic Growth (PC-PEG).
He concluded his remarks by recognizing the frustrations Ghanaians face due to currency depreciation but urged them to consider the substantial progress made since the painful economic crisis in 2022.
