The International Monetary Fund (IMF) has revealed that the 1.2% Gross Domestic Product (GDP) growth forecast for Ghana in 2023 captured in the World Economic Outlook (WEO) was based on old data.

According to the Resident Representative to Ghana, Dr. Leandro Medina, the Fund would revise the growth rate projection when it receives new data.

Reasons for revision

The Resident Representative said the Fund did not take into account the recent data released by the Ghana Statistical Service.

“In particular, it did not take into account the recent data that showed a higher growth rate than expected at the beginning of the programme (averaging 3.2% for the first two quarters).”

Dr. Madina argued that “ At the current juncture, and based on the findings of the first ECF [Economic Credit Facility] review, the IMF Staff assessment indicated that the growth projection for 2023 will be revised up from the previous 1.5%”.

Background

The IMF lowered Ghana’s growth rate to 1.2%, from the July 2023 forecast of 1.6%.

It was the second time the Fund has revised Ghana’s GDP growth for this year.

In April 2023, the Fund predicted a 2.8% growth rate for Ghana in its World Economic Outlook (WEO) Report.

The World Bank had also slightly lowered the country’s growth rate forecast for this year to 1.5%, according to its October 2023 Africa Pulse Report.

BoG on growth rate

The Governor of the Bank of Ghana, Dr. Ermest Addison, during the recent Monetary Policy Committee press conference said the Central Bank expects more than 3% GDP growth for Ghana in 2023.

This he said was based on some developments in the economy over the last two quarters.