IMF sees "modest upturn" in Ghana economy

Mar 30, 2010

The International Monetary Fund (IMF) expects a "modest upturn" in Ghana's economy to take place during 2010.

Speaking at the end of a mission to the country's capital Accra, Peter Allum of the IMF said signs of recovery will begin to emerge following a poor 2009, when the economy was estimated to expand by between three and four per cent - down from the 7.3 per cent rise seen a year earlier.

He explained the main challenge for the country's policymakers is fiscal management, as although the budget deficit was cut to 9.7 per cent of gross domestic product (GDP) in 2009, this figure would have been much larger were it not for "new domestic expenditure arrears of about four percentage points of GDP".

Despite the problems facing the country, Mr Allum insisted "good progress" has been made in the first year of Ghana's attempts to strengthen its fiscal institutions, with the establishment of a consolidated Ghana Revenue Authority being one of the highlights.

Mr Allum is the second IMF staff member to make a trip to Ghana so far in 2010, with First Deputy Managing Director John Lipsky visiting in February.