On 19 January 2024 the IMF issued a report following consultations with Ghana under Article IV of the IMF’s articles of agreement and the first review of Ghana’s Extended Credit Facility arrangement. The report notes that Ghana’s performance has been strong, meeting the targets and structural benchmarks. The policies are achieving economic stabilization and there was resilient growth in 2023.

The recent severe external shocks have affected the economy and there were severe economic and financial pressures in 2022. Ghana’s reform program aims to respond to the current pressures and create a more resilient and prosperous economy. The report notes that the basis is currently being laid for higher and more inclusive growth.

Ghana is on course to lower the fiscal primary deficit on a commitment basis by about 4 percentage points of GDP in 2023. Spending has remained within program limits. In relation to government revenue, Ghana has met its non-oil revenue mobilization target. Government spending is within the limits agreed as part of the program.

Structural fiscal reforms are increasing domestic revenues and improving spending efficiency. Ghana is improving governance and transparency, creating an improved environment for private sector investment. Growth has been more resilient in 2023 and the fiscal position has improved. The IMF notes that full macroeconomic stability requires continued policy and reform implementation. The government plans to further reduce deficits by mobilizing additional domestic revenue and streamlining expenditure.

The IMF considers that reforms are required to improve tax administration, strengthen expenditure control and enhance fiscal rules and institutions. The management of state-owned enterprises needs to be improved to ensure lasting adjustment. Reforms are needed to create an environment that is attractive for private investment and to support sustainable job creation. The report notes that Ghana is also exposed to climate shocks and should continue to promote a green recovery by further advancing the adaptation and mitigation agendas.