The International Monetary Fund (IMF) is anticipating a rebound in the Ghanaian economy in 2024.
This is due to expected improve economic activities, particularly in the extractive sector, which will boost growth.
The Fund projected a 2.8% Gross Domestic Product for Ghana in 2023, but expects the growth rate in 2024 to be better.
Answering questions from the press at the just ended World Economic Forum in Davos, Switzerland, Division Chief at the Research Department, Daniel Leigh, said growth will slow down this year, partly because of the global headwinds which will affect the Ghanaian economy.
“On Ghana, we do expect growth to slow this year. This is partly because of the global headwinds that Pierre Olivier [Chief Economist and Director Research Department] has been discussing. So, it’s a difficult time for the global economy that affects Ghana”.
“But also, there are some domestic headwinds. In particular, inflation has increased significantly. And so, the Central Bank is tightening monetary policy, but that is cooling the economy domestically. Plus, the fiscal policies are tightening to address the elevated debt. This is the cooling in 2023”, he pointed out.
“But in 2024, we see a rebound in particular in the extractive activities. And that is going to support Ghana in 2024”, he added.
Mr. Leigh also spoke of the $3 billion extended credit facility that Ghana is seeking from the IMF, saying, “The goal of that program is to reestablish macroeconomic stability, debt sustainability, and create the foundations for higher and inclusive growth over the medium-term”.
“I would add that right now — so just very recently — the IMF team went to Ghana, reached agreement with the Ghanian authorities on an economic reform program that will be supported under a $3 billion extended credit facility. And the goal of that program is to reestablish macroeconomic stability, debt sustainability, and create the foundations for higher and inclusive growth over the medium-term”.
Meanwhile, in sub-Saharan Africa, growth is projected to remain moderate at 3.8% in 2023 amid prolonged fallout from the COVID-19 pandemic, although with a modest upward revision since October, before picking up to 4.1% in 2024.
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