The International Monetary Fund (IMF) has noted that Ghana’s economy is recovering in spite of the challenges it faced as a result of the COVID-19 pandemic.

The Fund made the observation during consultations held under Article IV during its April 28 – May 12, 2021, under the leadership of Mr Sdralevich. 

The organisation in a statement said: “Ghana has managed very effectively the COVID-19 outbreak in the country, and thus succeeded in protecting lives. 

“Almost 93,000 cases have been confirmed, and unfortunately 780 people have died as of today. The launch of mass vaccine rollout has been a breakthrough, with the administration of approximately a million doses as of end-May.”

The report further noted that Ghana’s GDP growth dropped by 0.4 per cent in 2020 from 6.5 percent in 2019, as a result of reduced activity in its extractive industries and a collapse in hospitality and retail services. The west African country also recorded a spike in inflation due to food price hikes, before it fell to 8.5 per cent in April 2021.

The GDP of the West African nation is projected to grow by 4.8 per cent in 2021, as the mining and service industry is expected to reopen. Inflation is expected to remain around the central bank’s target of eight per cent by end-2021, per the report.

The Fund also notes that Ghana’s 2021 budget’s recent policy pivot towards fiscal consolidation is the right direction to make in the light of the pandemic, noting that it should be focused around debt service reduction in order to create space for social, health, and development spending.