Ghana has faced the worst phase of its economic challenges- IMF Mission Chief Stephane Roudet

Stéphane Roudet, IMF Mission Chief for Ghana, has expressed optimism about the Ghanaian economy’s future, asserting that the country has likely weathered its worst economic challenges and is on track for a full recovery.

Mr Roudet’s upbeat forecast is contingent on the government’s continued adherence to the IMF programme’s implementation, which he credits for stabilizing and even bolstering Ghana’s economic performance over the past year.

Responding to questions from journalists during a media briefing on the sidelines of the IMF/World Bank April Spring Meetings, about potential economic disruptions to Ghana’s economy due to global developments, Mr Roudet downplayed concerns about a fleeting recovery.

He emphasized that sustaining macroeconomic stability rests squarely on the government’s commitment to the IMF programme.

“I think if the programme continues to be implemented the same way it has been implemented in the past. Yes, we will have seen the worst. But fully restoring macroeconomic stability requires continued implementation of the programme. There is no doubt about this. I think this has been the message across the board.

“It has been the same from the managing director when she was in Accra a few weeks ago. The programme needs to continue to be implemented to make sure that those gains are entrenched and further gains are being realised over the next few years,” he quipped.

Highlighting Ghana’s commendable performance, he stated that Ghana is overperforming under the IMF programme. He lauded the programme’s effectiveness, noting that it not only meets but exceeds its promises.

“Ghana is overperforming under the IMF programme and that is good. Ghana’s programme is delivering on its promises and in fact, it is over-delivering,” he remarked.

Ghana’s robust performance has prompted the IMF to reconsider its growth forecasts for the country for 2024, with Mr Roudet citing better-than-expected inflation figures as a contributing factor.

“We are also surprised by how well growth has performed under Ghana’s programme, a development that was not anticipated at the programme’s outset,” he posited attributing this success to Ghana’s commitment and earnestness in implementing the programme, with the Bank of Ghana actively contributing to inflation control.

To fully restore confidence in Ghana’s economy among various stakeholders, including rating agencies and development partners, Mr Roudet stressed the crucial role of the IMF programme’s rigorous implementation.

He asserted that, “If the macroeconomic development unfolds as planned in the IMF programme, we should expect positive responses from all rating agencies and domestic stakeholders, which will further boost confidence in the economy.”

Source:norvanreports I IMF/World Bank April Spring Meetings