The International Monetary Fund (IMF) has reported that Ghana is on course to achieve a primary surplus of 0.5% of Gross Domestic Product (GDP) on a commitment basis, despite fiscal pressures arising from a recent dry spell and challenges in the energy sector.
This update follows the completion of the third review of Ghana’s 36-month Extended Credit Facility (ECF) arrangement by the IMF Executive Board.
Looking ahead, the IMF highlighted the government’s commitment to advancing fiscal consolidation, targeting a primary surplus of 1.5% of GDP by 2025. This will be achieved through enhanced domestic revenue mobilization and rationalizing non-priority spending, alongside expanding social programmes to support vulnerable populations during the ongoing policy adjustments.
The IMF emphasized that continued fiscal discipline relies on timely reforms, including modernizing Ghana’s fiscal responsibility framework, strengthening revenue administration, enhancing public financial management, and improving the management of state-owned enterprises (SOEs), particularly in the energy and cocoa sectors.
The Bank of Ghana (BoG) has also maintained a cautious monetary policy stance to curb inflation amid ongoing risks. Additionally, efforts to rebuild international reserves and strengthen the stability of the financial sector have been prioritized, including actions to recapitalize state-owned banks within available resources.
The IMF further noted the importance of ambitious structural reforms to foster an environment conducive to private sector growth, enhance governance, and improve transparency, all critical to boosting economic potential and creating sustainable employment opportunities.
IMF Approves $360 Million Disbursement
Following the third review of Ghana’s ECF arrangement, the IMF Executive Board has approved the release of SDR 269.1 million (approximately $360 million) to Ghana.
The IMF praised Ghana’s policy and reform efforts under the programme, noting they have yielded encouraging results and laid a foundation for continued economic progress.
SOURCE: JoyBusiness
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