Ghana’s economy, along with other countries in sub-Saharan Africa, is set to experience a promising 3.8% growth in 2024.
The International Monetary Fund’s (IMF) 2024 Regional Economic Outlook for sub-Saharan Africa forecasts an increase from the 3.4% growth seen in 2023.
The report also anticipates continued economic recovery beyond 2024, projecting a growth rate of 4.0% in 2025.
Inflation rates have nearly halved, public debt levels have largely stabilized, and several countries have issued Eurobonds this year, marking a return to international markets after a two-year gap.
However, despite these positive projections, the region remains susceptible to global external shocks, rising political instability, and frequent climate events.
To address these vulnerabilities, the IMF recommends adopting and improving public finances without hindering development, focusing monetary policy on maintaining price stability, and implementing structural reforms to diversify funding sources and economies.
Catherine Pattillo, Deputy Director in the IMF’s African Department, expressed concern in an interview about the various natural disasters in southern and eastern Africa, noting that they may impact the economic projections.
“In Southern Africa, they are facing a really devastating drought and in East Africa, you are seeing a lot of flooding in a number of countries and so this impact is going to be felt and given the potential impact on the agricultural sector, it could mean that we will have to look at those growth projections again.”
On the countries expected to see a downturn in growth, she said those are not a result of borrowing as often thought but what the borrowed funds are used on.
“The issue with borrowing is not so much about whether it is a good or bad thing per se but how you use the money and whether you can generate growth and both FX and domestic revenue to make sure that you can capture the rate of return and be able to stay stable.”
