Ghana: 2019 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Ghana

December 18, 2019

Preview Citation

Format: Chicago

Ghana: 2019 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Ghana, (USA: International Monetary Fund, 2019) accessed November 21, 2024

Summary

This 2019 Article IV Consultation with Ghana highlights discussions focused on strengthening institutions and policies to preserve macroeconomic stability and promote inclusive growth, building on the authorities’ “Ghana beyond Aid” strategy. The government headline deficit is projected to reach 4.7 percent of gross domestic product in 2019, driven by lower-than-expected revenues, spending on flagship programs, and unexpected security outlays due to emerging security challenges in the region. Medium-term prospects are favorable, with robust growth driven mostly by the extractive sector. Election-related spending pressures in 2020 constitute the main risk to the baseline scenario. Fiscal risks in the financial and energy sectors could also impact the government deficit. Government borrowing needs are exposed to rollover risk that should be carefully managed as financing conditions could tighten. The commitment to the new fiscal rules is expected to help maintain fiscal discipline, as reflected in the unchanged policy baseline. A more ambitious fiscal stance is called for to reduce macroeconomic risks, accelerate debt reduction, and strengthen the external balance.

Subject: Economic sectors, Energy sector, External debt, Financial sector, Government debt management, Public debt, Public financial management (PFM)

Keywords: Africa, CR, Deficit, Deficit target, Energy sector, Financial sector, Global, Government debt management, Government headline deficit, ISCR, MPC meeting, Policy priority, Staff appraisal, Staff projection, Target band, West Africa

Publication Details

Pages:

88
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/367
Stock No:

1GHAEA2019002
ISBN:

9781513523347
ISSN:

1934-7685

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