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Notes from Recent IMF Staff Visit to Ghana

  1. Large fiscal slippages observed last year will require strong efforts of fiscal consolidation – aka more austerity.
  2. Bank of Ghana’s (BoG) monetary policy has been instrumental in mitigating inflationary pressures in 2016
  3. Ghana’s economy continues to face challenges. Estimated economic growth of 3.6% in 2016 (vs. target of 3.3%)
  4. Current account deficit narrowed to 6½ percent of GDP, contributing to a small buildup of foreign exchange reserves.
  5. Overall 2016 fiscal deficit (on a cash basis) down to 9 percent of GDP (vs. 5¼ percent of GDP target as envisaged under the IMF-supported program. Large deviation was mainly due to poor oil and non-oil revenue performance and large expenditure overruns.
  6. Government debt-to-GDP ratio increased further to close to 74 percent of GDP at end-2016.

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