IMF says Ghana's economic stability is taking root, shifts focus to long-term resilience

The International Monetary Fund (IMF) says Ghana's macroeconomic stability is becoming firmly established, signalling a shift in its engagement with the country from crisis management towards strengthening long-term economic resilience.

The Fund's Director of Communications, Julie Kozack, made the assessment during a regular press briefing in Washington on Thursday, November 12.

She said Ghana's economy performed better than expected last year, recording growth of 6%, while the IMF projects expansion of 5.7% this year.

According to her, public debt has declined to approximately 50% of Gross Domestic Product (GDP), inflation has returned to single digits and the government remains on course to achieve its year-end primary surplus target.

Ms Kozack also noted that inflation had remained within single digits despite the global energy price shock experienced this year.

She confirmed that the staff-level agreement reached on November 5, covering the first review of Ghana's Policy Coordination Instrument (PCI), was still awaiting consideration and approval by the IMF Executive Board.

A notable aspect of her remarks was the Fund's description of Ghana's recovery efforts as a potential model for other countries facing economic difficulties.

She attributed the progress to strong government ownership of the locally developed reform programme, difficult policy decisions that were beginning to yield results and extensive social dialogue that helped secure public support.

"There is light at the end of the tunnel," Ms Kozack said, recalling the difficult economic conditions and public sentiment that prevailed in Ghana a few years ago.

Her positive assessment comes days after the IMF's Resident Representative in Ghana, Dr Adrian Alter, offered a more cautious outlook during an engagement in Accra on Tuesday.

Dr Alter acknowledged the country's economic progress but warned that the stability achieved was "but it isn't yet self-sustaining", stressing that Ghana would require between 5 and 10 years of consistent policy discipline to convince long-term investors.

The Fund has also indicated that significant work remains to consolidate the recovery.

Ms Kozack said its immediate priority was to focus on "strengthening and bolstering that resilience that comes next for the country".

Under the review agreed last week, the next phase of reforms will include rebuilding foreign exchange reserves, allowing greater exchange rate flexibility and establishing a sinking fund to meet maturing debt obligations.

Other outstanding reforms include the delayed publication of the Electricity Company of Ghana (ECG) collections audit, which remains part of the broader efforts to strengthen transparency and accountability in the energy sector.