International Monetary Fund (IMF) has acknowledged Ghana's robust performance under the Fund programme, revealing that the country has successfully met all quantitative performance criteria for the first review, along with almost all indicative targets and structural benchmarks.

Following the Executive Board's conclusion of the 2023 Article IV Consultation with Ghana and the First Review under the Extended Credit Facility Arrangement, the IMF stated that Ghana's commitment to the Fund-supported programme is evident in its progress toward reducing the fiscal primary deficit by approximately 4 percentage points of GDP in 2023.

The IMF highlighted several key achievements, emphasizing that spending has remained within program limits. Additionally, the authorities, comprising the Ministry of Finance and the Bank of Ghana, have significantly expanded social protection programs to mitigate the impact of the crisis on the most vulnerable populations. On the revenue front, Ghana has successfully met its non-oil revenue mobilization target.

The statement further noted that the Ghanaian authorities are making substantial headway in their debt restructuring strategy. The domestic debt restructuring was completed in the summer, and an agreement with the Official Creditor Committee (OCC) under the G20's Common Framework was reached on January 12, 2024, aligning with Fund program parameters.

Ambitious structural fiscal reforms are contributing to the positive trajectory, enhancing domestic revenues, improving spending efficiency, strengthening public financial and debt management, ensuring financial sector stability, fostering governance and transparency, and creating an environment conducive to private sector investment.

The IMF acknowledged the tangible results of these reform efforts, citing signs of economic stabilization, resilient growth in 2023, declining inflation, and improved fiscal and external positions.

Looking ahead, the IMF stressed the importance of steadfast policy and reform implementation to fully and durably restore macroeconomic stability and debt sustainability, fostering higher and more inclusive growth. The government's plans to reduce deficits, mobilize additional domestic revenue, streamline expenditure, and finalize comprehensive debt restructuring were highlighted as critical steps.

The IMF emphasized the need for continued efforts to protect the vulnerable and create space for higher social and development spending. Reforms in tax administration, expenditure control, management of arrears, fiscal rules, institutions, and state-owned enterprises (SOEs) management were identified as crucial for lasting adjustment.

The Deputy Managing Director and Acting Chair, Bo Li, concluded by highlighting the government's decisive steps to rein in inflation, rebuild foreign reserve buffers, and mitigate the impact of domestic debt restructuring on financial institutions. The IMF encouraged maintaining an appropriately tight monetary stance and enhancing exchange rate flexibility to achieve the program's objectives. Reforms to create a conducive environment for private investment and promote a green recovery were also emphasized.

Ghana's exposure to climate shocks was acknowledged, and promoting a green recovery by advancing adaptation and mitigation agendas was underscored as a priority. The IMF affirmed its commitment to supporting Ghana's economic recovery and sustainability.