The International Monetary Fund (IMF) has updated Ghana’s economic growth forecast for 2024, raising it from an initial 3% to 4%. This adjustment was shared by Abebe Aemro Selassie, Director of the IMF’s African Department, during the release of the Regional Economic Outlook in Washington, D.C., coinciding with the IMF/World Bank Meetings.
Mr. Selassie clarified that the earlier 3% estimate, included in the World Economic Outlook, was based on data available in mid-April 2024 and did not account for recent developments in Ghana. “The World Economic Outlook report was finalized with a deadline in mid-April, which is why the initial projection stood at 3%,” he explained.
Following a recent IMF review mission to Accra, the forecast was revised closer to 4%, reflecting Ghana’s improved economic performance. Mr. Selassie remarked that had the World Economic Outlook been compiled in mid-October, the original 3% projection would not have been applicable.
In the World Economic Outlook released on October 23, 2024, the IMF initially anticipated Ghana’s growth rate at 3%, aligning closely with the Ghanaian government’s projection of 3.1% GDP growth in the 2024 Budget. However, IMF sources had previously indicated to JOYBUSINESS that the figure would likely be revised upward before year-end.
The recent outlook aligns with a positive trend also noted by the World Bank, which, in its Africa Pulse Report earlier this month, suggested Ghana’s growth could indeed reach 4% by year’s end, driven by increased economic activity in the latter half of the year.
Mr. Selassie added that the upward growth trend indicates that Ghana’s economic reforms are starting to yield results. Nevertheless, he cautioned that certain risks persist and emphasized the importance of maintaining fiscal discipline and debt sustainability, especially in an election year. “Striking a balance to prevent excessive spending is critical to safeguarding Ghana’s economic health,” Mr. Selassie advised.
By MyABCLive.com, sourced from Myjoyonline.com
