Source: Africa Publicity
The Ghanaian government and the International Monetary Fund (IMF) have reached a staff-level agreement on economic policies and reforms to conclude the fourth review of the Economic Credit Facility (ECF)-supported programme.
The agreement paves the way for access to approximately $370 million in IMF financial support.
Economic Performance
The IMF noted that Ghana’s growth in 2024 was higher than expected, driven by strong mining and construction activity. The external sector also saw significant improvement, thanks to solid exports and higher remittances. However, the overall performance under the IMF-supported programme deteriorated at the end of 2024 due to fiscal slippages and delayed reforms.
Fiscal Challenges and Reforms
The government accumulated a large amount of payables, leading to a primary balance deficit of 3¼ percent of GDP, compared to a targeted surplus of ½ percent of GDP. To address these challenges, the government has enacted a 2025 Budget targeting a 1½ percent of GDP primary surplus and adopted public financial management reforms.
Next Steps
The IMF staff-level agreement is subject to Executive Board consideration. If approved, the disbursement will bring the total IMF financial support to approximately $2.355 billion since May 2023.
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