Ghana Projects Higher Economic Growth and Lower Inflation for 2024
Ghana projected higher growth, lower inflation and an improved budget position next year, as strict measures imposed under its bailout from the International Monetary Fund bear fruit.
“Ghana has paid its dues,” Finance Minister Ken Ofori-Atta told lawmakers on Wednesday in the capital, Accra. “Ghana has turned the corner and is getting back on track,” he said in a speech to present the government’s 2024 budget.
He forecast economic growth of at least 2.8% next year from 2.3% in 2023, reaching 5% in 2027, while central bank policies aimed at curbing price pressures would slow inflation to 15% by end-2024. It was 35.2% in October.
Ofori-Atta’s budget resisted measures that might have been popular with voters ahead of an election next year. That reflects Ghana’s need to restore investor confidence and abide by the conditions of its deal with the IMF, which granted the country $3 billion in support in May to rescue it from debt distress.
Key Budget Forecasts for 2024:
- Overall real gross domestic product growth of at least 2.8%
- Non-oil real GDP growth of at least 2.1%
- Inflation rate of 15% by end of year
- Primary balance on commitment basis of a surplus of 0.5%
- Forex reserves to cover not less than 3 months of imports
Ghana is “determined to maintain the discipline, compassion and creativity required to keep the economy stable,” Ofori-Atta said.
This month, Fitch Ratings upgraded Ghana’s local-currency credit score from restricted default after the government completed a domestic restructuring that resulted in “sizable” debt-servicing savings.
The government also said on Oct. 30 it was confident of agreeing a memorandum of understanding on debt relief with official creditors this month needed to unlock another $600 million in IMF funds.
Ofori-Atta told lawmakers the government will conclude negotiations with official creditors, without offering any further details.