Ghanaian economy to rebound in 2024- IMF anticipates

The International Monetary Fund (IMF) is anticipating a rebound in the Ghanaian economy in 2024 due to expected improve economic activities in the extractive sector.

IMF projects a 2.8% Gross Domestic Product for Ghana in 2023, but expects an increase in 2024.

Division Chief at the Research Department, Daniel Leigh, says the growth will slow this year due to the global headwinds which will affect the economy.

He says, “In Ghana, we do expect growth to slow this year. This is partly because of the global headwinds that Pierre Olivier 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.”

He added $3 billion dollars extended credit facility that Ghana is seeking from the IMF is aiming to re-establish 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.