Ghana: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Ghana

IMF Staff Country Reports, October 20, 2008

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Canonical URL: Ghana: 2008 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Ghana

Ghana’s growth has remained strong, fuelled by both the private and public sectors.
The Ghanaian economy maintained strong growth of about 6½ percent in 2007 and the first months of 2008.
The private sector has responded positively to macroeconomic stability, structural reforms, and an increasingly business-friendly environment.
Fiscal spending increased, leading to excess demand.
Supply-side shocks, especially from international fuel prices, have impacted Ghana negatively.
Overall, Ghana’s terms of trade continued to improve.

Macroeconomic environment
- Private-sector response: positive reaction to macroeconomic stability, structural reforms, and a more business-friendly environment.
- Public-sector contribution: fiscal expansion contributed to overall growth but also generated excess demand.
External and supply shocks
- International fuel prices identified as a key supply-side shock adversely affecting the economy.
- Despite shocks, terms of trade showed improvement.

Subject: Debt sustainability, External debt, Income, Inflation, Prices, Public debt, Public financial management (PFM)
Keywords: burden indicator, concessional financing possibility, CR, debt, Debt sustainability, deficit, Ghana, Global, headline inflation, Inflation, ISCR, IT framework, NPV, real GDP, reform policy, West Africa

IMF Staff Country Report: Ghana: 2008 Article IV Consultation (Country Report No. 2008/344)