The IMF says Ghana’s economy grew faster than expected in 2024, driven by booming mining and construction sectors, with gold exports and remittances boosting reserves.
Ghana’s economy outperformed expectations in 2024, with growth largely propelled by a surge in mining and construction activity, according to the International Monetary Fund (IMF).
This was revealed following a two-week IMF mission to Accra, led by Mission Chief Stéphane Roudet, as part of Ghana’s review under the Extended Credit Facility (ECF) programme.
“Growth in 2024 was higher than expected, underpinned by strong mining and construction activity,” the IMF noted, emphasizing the sector’s pivotal role in boosting the country’s economic performance.
The mining and quarrying sector, including both legal and illegal small-scale mining (galamsey), emerged as the primary engine of growth.
The Finance Minister, Dr. Cassiel Ato Forson, also highlighted the sector’s contribution during the presentation of the 2025 Budget Statement, linking it directly to the 5.7% GDP growth recorded in 2024.
The IMF also pointed to improvements in Ghana’s external position, supported by solid export performance—particularly in gold—and increased remittances. These gains helped the country exceed its international reserve targets under the ECF-supported programme.
However, despite these positive developments, the IMF flagged concerns over fiscal slippages ahead of the 2024 general elections. Preliminary data show a significant accumulation of unpaid obligations, with inflation surpassing program targets.
“Overall performance under the IMF-supported program deteriorated markedly at end-2024,” the mission reported.
To address these issues, the government has launched an audit of payables and enacted a 2025 budget aimed at restoring fiscal discipline, including a targeted 1.5% of GDP primary surplus and reforms in public financial management.
The Bank of Ghana has also raised its policy rate, signaling tighter monetary policy to help bring inflation under control.
Source: 3news.com