The International Monetary Fund (IMF) has revealed that Ghana's performance under the Fund program has been robust, with all quantitative performance criteria for the first review and nearly all indicative targets and structural benchmarks being met.

In a statement following the Executive Board Concluding of the 2023 Article IV Consultation with Ghana and First Review under the Extended Credit Facility Arrangement, the Fund commended Ghana for being on track to lower the fiscal primary deficit by about 4 percentage points of GDP in 2023.

The statement highlighted that spending remained within program limits, and the authorities (Ministry of Finance, Bank of Ghana) significantly expanded social protection programs to mitigate the impact of the crisis on the most vulnerable population. Ghana also met its non-oil revenue mobilization target on the revenue side.

“Spending has remained within program limits. To help mitigate the impact of the crisis on the most vulnerable population, the authorities [Ministry of Finance, Bank of Ghana] have significantly expanded social protection programmes. On the revenue side, Ghana has met its non-oil revenue mobilization target”, the statement pointed out.

Moreover, the statement acknowledged Ghanaian authorities' progress on their debt restructuring strategy, emphasizing the completion of domestic debt restructuring and an agreement with the Official Creditor Committee (OCC) under the G20’s Common Framework. This agreement paved the way for the Executive Board review to be completed.

The IMF noted that ambitious structural fiscal reforms in Ghana are enhancing domestic revenues, improving spending efficiency, strengthening public financial and debt management, preserving financial sector stability, enhancing governance and transparency, and creating a more conducive environment for private sector investment.

The statement pointed out that the authorities' reform efforts are yielding positive results, with signs of economic stabilization such as resilient growth in 2023, declining inflation, and improvements in the fiscal and external positions.

Looking ahead, the IMF stressed the importance of steadfast policy and reform implementation for fully restoring macroeconomic stability, debt sustainability, and fostering sustainable economic growth and poverty reduction.

Deputy Managing Director and Acting Chair, Bo Li, acknowledged Ghana's economic performance amid significant volatility. He emphasized the positive results of the authorities' efforts to reorient macroeconomic policies, restructure debt, and implement wide-ranging reforms. Bo Li highlighted the need for continued efforts, including reducing deficits, finalizing comprehensive debt restructuring, protecting the vulnerable, and implementing reforms to improve tax administration, fiscal rules, institutions, and SOEs management.

He also emphasized the importance of maintaining an appropriately tight monetary stance, enhancing exchange rate flexibility, and addressing issues in the financial sector to achieve the program's objectives. Bo Li concluded by stressing the need for reforms to create a conducive environment for private investment and promoting a green recovery to address Ghana's exposure to climate shocks.