IMF Boosts Ghana’s 2024 Growth Forecast to 4%
Positive Outlook as Recent Developments Drive Revisions in Growth Projections
- IMF raises Ghana’s 2024 growth projection from 3% to 4% based on recent economic developments
- Current growth indicators show that economic reforms are yielding positive results
- Emphasis on the need for fiscal prudence and avoiding overspending in an election year
The International Monetary Fund (IMF) has updated its growth forecast for Ghana in 2024, raising it from 3% to 4%.
This announcement was made by Abebe Aemro Selassie, Director of the African Department, during a Q&A session at the launch of the Regional Economic Outlook report in Washington, D.C., coinciding with the IMF/World Bank Meetings.
Selassie explained that the previous 3% estimate was based on data from mid-April 2024 and did not account for more recent developments in Ghana’s economy.
“The 3% projection reflected our deadline for the World Economic Outlook report,” he noted.
After a recent IMF review in Accra, the growth rate is now anticipated to be closer to 4%.
He emphasized that if the report had been compiled in mid-October 2024, the growth forecast would likely have been different.
Initially, the IMF’s World Economic Report released on October 23, 2024, projected a 3% growth rate for Ghana, aligning with the government’s own forecast of 3.1% GDP growth stated in the 2024 Budget. An IMF official had indicated that the growth figures were likely to be revised later in the year.
This positive adjustment signals optimism from both the IMF and the World Bank regarding Ghana’s economy.
The World Bank’s Africa Pulse Report, released earlier this month, predicted a 4% growth rate for Ghana by the end of 2024, driven by a surge in economic activity in the latter half of the year.
Selassie highlighted that the current growth indicators suggest that ongoing reforms are effective. However, he cautioned about persistent threats and stressed the importance of maintaining fiscal prudence and debt sustainability, especially in an election year, to ensure a robust economy moving forward.
