Ghana's economy is expected to grow by between 4% and 5% in 2010, boosted by investments linked to the oil sector according to a statement released by the International Monetary Fund (IMF).

"The IMF estimates that the economy expanded by 3% to 5% in 2009, notwithstanding the global financial crisis, as cocoa and gold exports remained strong. This is down from 7.3% in 2008, a year of highly expansionary fiscal policies that destabilised the economy," says Peter Allum the IMF's mission chief to the West African country.

The statement further reads that “inflation slowed to 14% in February 2010 from 20% to 21% in the first half of 2009, and a further decline to single digits by end of 2010 is projected. With a sharp downturn in imports, the external current account recorded its smallest deficit in five years, and the Ghanaian cedi has strengthened against the dollar since July 2009.

"Looking ahead to 2011, Ghana's main challenges relate to its move to oil producer status. The pending oil and gas revenue management bill is expected to ensure that petroleum revenues and related spending are transparently reflected in the budget. Managing expectations regarding the likely fiscal space for new programmes and projects will also be important. Given the need to repay expenditure arrears while also reducing the fiscal deficit, the initial scope for spending from oil revenues could be relatively modest."