The Ghanaian economy is expected to recover in 2024, according to the International Monetary Fund (IMF).

This is because growth will be boosted by anticipated improvements in economic activity, particularly in the extractive industry.

The Fund estimated Ghana's GDP to be 2.8% in 2023, but they anticipate a higher growth rate in 2024.

Division Chief of the Research Department Daniel Leigh responded to press inquiries at the recently concluded World Economic Forum in Davos, Switzerland, by stating that this year's growth will slow down in part due to the global headwinds that will influence the Ghanaian economy.

“On Ghana, we do expect growth to slow this year. This is partly because of the global headwinds that Pierre Olivier [Chief Economist and Director Research Department] has been discussing. So, it’s a difficult time for the global economy that affects Ghana”.

“But also, there are some domestic headwinds. In particular, inflation has increased significantly. And so, the Central Bank is tightening monetary policy, but that is cooling the economy domestically. Plus, the fiscal policies are tightening to address the elevated debt. This is the cooling in 2023”, he pointed out.

“But in 2024, we see a rebound in particular in the extractive activities. And that is going to support Ghana in 2024”, he added.

Mr. Leigh also spoke of the $3 billion extended credit facility that Ghana is seeking from the IMF, saying, “The goal of that program is to reestablish macroeconomic stability, debt sustainability, and create the foundations for higher and inclusive growth over the medium-term”.

“I would add that right now — so just very recently — the IMF team went to Ghana, reached agreement with the Ghanian authorities on an economic reform program that will be supported under a $3 billion extended credit facility. And the goal of that program is to reestablish macroeconomic stability, debt sustainability, and create the foundations for higher and inclusive growth over the medium-term”.

Despite a slight upward revision since October, growth in sub-Saharan Africa is predicted to be mild in 2023 at 3.8% with ongoing COVID-19 pandemic effects before accelerating to 4.1% in 2024.