Ghana’s economy not yet there but on the right path

The International Monetary Fund’s (IMF) resident representative in Ghana, Dr. Leandro Medina, has lauded the nation’s concerted efforts to achieve economic stability, affirming that although Ghana has not reached its destination, it is undeniably on the right path.

During an interview on the Citi Breakfast Show on Tuesday, January 30, Dr. Medina told host Bernard Avle, that Ghanaian authorities are actively working to revitalize the economy. The indicators, he stated, clearly demonstrate the commitment and actions taken by the government.

“Despite a very difficult external environment, macro has been quite resilient, when you look at growth, we had to upgrade our projections because growth in 2023 has been more resilient, Inflation has been on a decreasing path, reserves have been increasing, and exchange volatility has also decreased.”

“It is extremely important to know where we are and where we intend to be. By no means are we there, [but] when we see early signs of stability emerging, this means that for example, inflation is down from 54 to 23, 23 is still high for inflation and way above the BoG target but we are getting there, we are on the right track.

“The critical reforms have been made, critical actions by authorities have been taken and we are on the right path. Are we there? not yet, there are key objectives of this programme, that is to restore macroeconomic stability, secure sustainability, and lay the foundations for more durable and higher and more inclusive growth, we are not there yet but we are on the right path.”

Key among the positive indicators highlighted by Dr. Medina are the downward trend in inflation, and a significant upsurge in the reserves of the Bank of Ghana, signifying a commendable effort to fortify the nation’s financial standing.

Expanding on the economic measures taken, Dr. Medina noted that despite persistently high inflation, there is a discernible positive trend.

In December 2023, inflation decreased to 23.2 percent from a record high of 54 percent in December 2022, indicating a significant improvement in the economic landscape.

Dr Medina added that the collaboration between Ghanaian authorities and international financial institutions in navigating economic challenges and implementing prudent fiscal policies is yielding positive results.

He added that the positive assessment provides a glimpse of optimism for Ghana’s economic future, reinforcing the notion that ongoing efforts are steering the country towards a trajectory of sustained growth and stability.