IMF clarifies Ghana’s growth rate projection

The International Monetary Fund’s (IMF) Resident Representative in Ghana, Dr. Leandro Medina, has clarified that the growth rate for the country has not been revised to 1.2% from the May 2023 forecast of 1.5%.

Dr. Medina explained that the latest IMF World Economic Outlook projection of 1.2% growth for 2023 is based on an old set of projections that do not take into account the recent data releases that showed a higher growth rate than expected at the beginning of the program (averaging 3.2% for the first two quarters).

He added that based on the findings of the first ECF review mission that just ended last week, the IMF staff assessment is that the growth projection for 2023 will be revised up from the 1.5% previously assumed.

Various media portals reported that the IMF had lowered Ghana’s growth rate to 1.2% making it the second time the Fund had revised Ghana’s Gross Domestic Product (GDP) growth for 2023.

But Dr Medina in a statement clarifying the issue said “The latest IMF World Economic Outlook projection (1.2 per cent growth for 2023) is based on an old vintage of Fund staff projections. In particular, it does not take into account the recent data releases that showed a higher growth rate than expected at the beginning of the program (averaging 3.2 per cent for the first two quarters).

“At the current juncture, and based on the findings of the first ECF review mission that just ended last week, IMF staff assessment is that the growth projection for 2023 will be revised up from the 1.5 percent previously assumed.”

Stéphane Roudet, the International Monetary Fund’s (IMF) Mission Chief to Ghana in an interview on the Point of View with Bernard Avle on Monday, October 9 also lauded Ghana’s economic growth.

Mr Roudet intimated that Ghana’s quick economic recovery is surprising and also encouraging, as the country has outperformed the IMF’s projection for the year 2023.

He indicated that the IMF had projected Ghana’s economy to grow at a rate of 1.5 percent by the year ending 2023, but the first-half report shows that the country’s economy is growing at a rate of 3 percent, which he said is very encouraging and will go a long way to ensuring the smooth disbursement of the second tranche of the $3 billion credit facility from the Fund.

“Ghana’s economic activities I have to say, have surprised us on the outside. You will remember that in the programme, we were projecting economic growth of 1.5 percent for this year, and now we have the outcome for the first half of the year, and we are about 3 percent and so you can see that there are signs that are encouraging.”