Ghana expects a positive outcome from the first review of the implementation of the three-year International Monetary Fund (IMF)-supported economic reform programme, Ernest Addison, Governor of Bank of Ghana, has said.
Addison disclosed during the Monetary Policy Committee (MPC) press briefing on Monday that the IMF review team was in town and had commenced the review process of Ghana’s implementation of economic reforms in compliance with the Fund-supported programme approved in May.
He said, the results so far, were positive and could elicit a positive assessment from the IMF review team.
“The MPC observed the overall improving macroeconomic conditions with relatively strong economic growth and a drop in inflation in August. These developments provide evidence that the policy mix under the three-year IMF programme is beginning to yield results,” the governor stated.
The governor was optimistic that IMF would be impressed by Ghana’s performance so far and disburse the next tranche of 600 million U.S. dollars to help the ailing economy.
“Economic activity is rebounding strongly, the exchange rate is stabilizing, inflation is declining, and the level of foreign exchange reserves has improved. Sustained improvement in these indicators should restore real incomes and purchasing power,” the governor stated.
He posited that the growth outcome for 2023 could be higher than the projection made under the IMF program, due to first and second quarter (Q1 and Q2) growth numbers.
Ghana recorded a 3.2-percent economic growth in Q2, after growing 3.3 percent in Q1, according to the Ghana Statistical Service, higher than the1.5 percent growth target set in the IMF programme.
Coupled with that Addison said the central bank’s confidence survey also indicated an improvement in consumer and business sentiments, which were likely to continue for the rest of the year in line with improving macroeconomic conditions.
Consumer inflation also declined 3.0 percentage points to 40.1 percent in August from 43.1 percent in July. The local cedi currency has been relatively stable in 2022, depreciating cumulatively by 22.5 percent against the U.S. dollar between January and September, compared with 24.1 percent over the same period last year.
The governor attributed these positive outturns to measures introduced under the IMF programme and the strong monetary policy stance.
“We are projecting possibly a 3.0 percent growth, almost double the projected growth rate under the IMF programme. The consensus of the MPC is that we should see stronger growths than projected under the programme,” added the governor.
All things being equal, the governor said Ghanaians would soon start realising the impact of the three-year, 3.0-billion-dollar-backed economic reform programme.
The world’s second largest cocoa producer, with gold and crude oil also featuring strongly in its commodity exports basket has been in the grip of debilitating economic woes since 2022.
The government secured a three-year IMF bail-out package of 3.0 billion U.S. dollars, to support economic reforms, reduce inflation and currency depreciation, targeting a return to sustained economic growth.