World Bank, IMF affirm Ghana’s economic recovery – Dr Adam

Minister for Finance, Dr. Mohammed Amin Adam, has shared promising updates regarding the country’s ongoing economic recovery.

He underscored Ghana’s strides in restoring macroeconomic stability and resilience.

The Minister reiterated the government’s dedication to implementing strategies aimed at sustaining growth and development in the country.

He took solace in the fact that both the International Monetary Fund (IMF) and the World Bank have affirmed Ghana’s progress.

He is happy that both multilateral institutions pledged their unwavering support to aid in the nation’s full recovery from the economic shocks induced by the COVID-19 pandemic and geopolitical challenges like the Russian invasion of Ukraine.

Addressing the press at the head office of the World Bank in Washington DC, Dr. Adam highlighted Ghana’s economic journey since securing a $3 billion extended credit facility from the IMF in May 2023.

He credited the implementation of sound policies by the government for driving the economy towards recovery, a trajectory acknowledged by international partners.

The Minister emphasized that discussions with various stakeholders during the Spring Meetings were overwhelmingly positive.

Key indicators of Ghana’s economic performance showcased during the meetings included robust growth, with a 2.9% increase in 2023 surpassing initial targets, and a notable decrease in inflation from 54% at the end of 2022 to 25.8% in March 2024.

Dr. Adam also highlighted the cedi’s stabilization against major currencies and attributed it to strong monetary policies and interventions by the Bank of Ghana and the Ministry of Finance.

Additionally, the Finance Minister revealed Ghana’s successful negotiation of a staff-level agreement with the IMF, facilitating the country’s second review under the programme.

With confidence in Ghana’s economic trajectory, he expressed optimism about securing a board-level approval for the release of the third tranche of $360 million from the IMF, bringing the total disbursement to $1.5 billion.

Ghana will receive its next funding support from the IMF even if it is unable to sign a final debt pact with its official bilateral creditors before the IMF Board meets in June 2024 on the country’s second review programme.

The country reached a staff-level agreement on its second review with the IMF mission team last Saturday, April 13, where the team noted that the country had made “strong progress” under the loan-support programme.

It said the next step was for the country to sign a Memorandum of Understanding (MoU) with its official creditors, consistent with the terms agreed in January 2024, and in line with the programme parameters.

Dr. Adam commended the government’s commitment to economic management under the leadership of President Nana Addo Dankwa Akufo-Addo and emphasized the importance of continued collaboration with development partners to accelerate Ghana’s economic growth.

He underscored Ghana’s focus on implementing initiatives such as the PC-PEG program to sustain growth, optimize domestic revenue mobilization, control expenditure, enhance SME productivity, and address energy sector challenges.

Dr. Adam highlighted Ghana’s progress towards economic recovery and expressed gratitude for the support received from international partners.