IMF programme: We are beginning to reap substantial macroeconomic dividends – Ernest Addison

Governor of the Bank of Ghana (BoG), Dr. Ernest Addison has indicated that the country is reaping substantial macroeconomic dividends thanks to the implementation of the programme with the International Monetary Fund (IMF).

The Governor made the statement over the weekend during an engagement with the IMF team for the second review with the steadfast implementation of policy measures under the IMF programme.

“With substantial progress in these measures, we are beginning to reap substantial macroeconomic dividends. Inflation has dropped significantly from a peak of 54 percent at end of 2022 to 23 percent in 2023. The exchange rate remained relatively stable throughout last year, supported by tighter monetary policy and stronger foreign exchange reserves. Economic growth surprised on the upside,” Governor Dr. Ernest Addison said.

In the meeting that had the Ministry of Finance heavily represented, the Central Bank Governor said during the first quarter of this year, progress has continued although the country has witnessed some slowdown in the pace of disinflation primarily due to a variety of factors including adverse base drift effects.

He said the expectation, however, is for the disinflation process to resume in the second quarter of 2024 and beyond driven by continued maintenance of a tight monetary policy stance.

“Our expectation for end-year inflation of 15+/- 2% remains unchanged,” Dr. Ernest Addison said.