Ghana’s Economy on Path to Recovery – Finance Minister

Accra, Monday 1st July, 2024 – Ghana’s economy is showing strong signs of recovery, according to Finance Minister Dr. Mohammed Amin Adam. Speaking at a joint press briefing with the IMF, on the economy and the second review of the IMF-supported programme, Dr. Adam expressed confidence in the country’s economic trajectory.

“I am confident that our economy is certainly on the path of sustained recovery, and we will continue to work tirelessly to ensure sustainable growth and prosperity for all Ghanaians,” Dr. Adam stated.

The Minister highlighted several key developments in June 2024 that underscore this progress. These include reaching agreements on debt restructuring with both the Official Creditor Committee (OCC) and Eurobond holders, as well as the IMF Executive Board’s approval of the second review of Ghana’s programme implementation.

The debt restructuring agreements are expected to provide significant relief. The OCC deal will lead to debt service relief of $2.8 billion between 2023-2026, while the Eurobond restructuring will result in the cancellation of $4.7 billion of debt and provide debt service relief of $4.4 billion over the same period.

Dr. Adam also announced the approval of the second review by the IMF Executive Board, which will result in a disbursement of $360 million to Ghana. This brings the total disbursements under the programme to $1.6 billion.

The Minister emphasized government’s commitment to maintaining fiscal discipline, stating, “Despite the fact that 2024 is an election year, we are committed to enhancing domestic revenue mobilization and tightening expenditure commitment controls to avoid policy slippages.”

IMF Mission Chief for Ghana, Mr. Stéphane Roudet, corroborated the positive outlook in the joint press briefing. “Ghana’s economic reform programme is delivering on its objectives,” he said. “These efforts are paying off, with growth proving more resilient than initially expected, inflation declining at a faster pace, and the fiscal and external positions improving.”

Roudet noted that Ghana’s performance under the IMF-supported programme has been “generally strong,” with all quantitative performance criteria for the second review and almost all indicative targets met.

However, he cautioned that while the medium-term outlook remains favorable, it is “subject to downside risks—including those related to the upcoming general elections.”

The Finance Minister concluded the briefing with a call for national unity and resilience. “Good people of Ghana, in this journey towards economic recovery and growth, we have faced challenges, but our resilience and determination have kept us strong,” Dr. Adam said. “Let us continue to stand united in support of our government’s efforts to steer our economy towards a brighter future.” END