Ghana Records Strong Economic Growth in 2024, But Faces Setbacks Ahead of IMF’s 4th Review Approval
ACCRA, April 15, 2025 — The International Monetary Fund (IMF) has confirmed that Ghana experienced stronger-than-anticipated economic growth in 2024, largely propelled by booming mining and construction activities. However, despite this momentum, the overall performance under Ghana’s IMF-supported program declined toward the end of the year.
In a statement issued after concluding its mission in Accra from April 2 to 15, the IMF indicated that it had reached a staff-level agreement with the Government of Ghana on the fourth review of the country’s Extended Credit Facility (ECF) program. The agreement, which still awaits final approval by the IMF Executive Board, will unlock an additional SDR 267.5 million (approximately US$370 million), raising total disbursements under the program to SDR 1,708 million (about US$2.355 billion).
According to Mr. Stéphane Roudet, IMF Mission Chief for Ghana, the country’s external sector recorded significant improvements in 2024. The surge was largely driven by solid export earnings—especially from gold and oil—and increased remittances, which led to a buildup of international reserves far exceeding program targets.
Yet, the Fund also highlighted serious setbacks toward the end of 2024, including fiscal slippages linked to election-year spending, delays in key reforms, and inflation overshooting its targets. Preliminary data revealed a large accumulation of government payables and a primary fiscal deficit of 3.25% of GDP, compared to a target surplus of 0.5%.
To counter these issues, the new government has taken decisive action. A revised 2025 budget aims for a primary surplus of 1.5% of GDP and introduces several public financial management reforms, such as an enhanced fiscal responsibility framework and stricter expenditure controls. The government has also launched an audit to confirm the extent of the fiscal slippages.
The IMF emphasized that discussions also focused on strengthening procurement and public financial systems, as well as expanding social protection programs to shield vulnerable populations from inflation and austerity measures.
Monetary tightening is underway, with the Bank of Ghana recently increasing its policy rate and revising liquidity operations in a bid to bring inflation under control. Meanwhile, structural reforms are being rolled out to enhance governance, improve State-Owned Enterprises in the gold, cocoa, and energy sectors, and resume quarterly electricity tariff adjustments to address arrears in the energy sector.
Ghana’s commitment to its comprehensive debt restructuring efforts under the G20 Common Framework was also welcomed. A Memorandum of Understanding with official creditors has been signed, and bilateral agreements are now being finalized. The government is also negotiating in good faith with commercial creditors to secure a fair debt treatment aligned with IMF program targets.
IMF staff met with key government officials, including Finance Minister Dr. Cassiel Ato Forson and Bank of Ghana Governor Dr. Johnson Asiama, during the mission. The Fund praised Ghanaian authorities for their transparency and ongoing cooperation.
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