The International Monetary Fund (IMF) has said that Ghana’s economic outlook is improving.
The Bretton Woods Institution said this In its 2021 Article IV consultation with Ghana on Monday.
The IMF said the government response to the covid helped contain the pandemic and support the economy.
“…The economic outlook is improving, even though risks remain, including from the evolution of the pandemic and rising debt vulnerabilities,” the statement said.
“The pandemic had a severe impact on economic activity. Growth slowed to 0.4 percent in 2020 from 6.5 percent in 2019, food prices spiked, and poverty increased”.
The statement also noted that Ghana’s fiscal deficit dropped to 15.2 per cent of GDP and a further 2.1 per cent of GDP on additional spending with the aid of bulk domestic arrears, including energy and financial sector costs.
“Public debt rose to 79 percent of GDP. The current account deficit widened slightly to 3.1 percent of GDP as the decline in oil exports was partially offset by higher gold prices, resilient remittances, and weaker imports.
“The Ghanaian Cedi remained stable against the US dollar, partly due to central bank intervention, and gross international reserves remained at 3.2 months of imports.
“External and domestic financing conditions tightened considerably at the start of the pandemic, but have improved since, and Ghana successfully returned to international capital markets for a US$3 billion Eurobond issuance in March 2021,” the statement said.