The International Monetary Fund (IMF) has hailed Ghana's progress toward macroeconomic stability and debt sustainability under the Economic Credit Facility (ECF)-supported programme, but warns that hidden risks persist.
Ghana's Economy Sees Signs of Stability Under IMF Programme
Ghana has made impressive progress toward macroeconomic stabilisation and debt sustainability under the ECF-supported programme, the IMF said in its 2026 Article IV Consultation on Ghana. The Fund noted that the programme, approved in May 2023, has helped ease acute financing pressures and restore stability through significant fiscal consolidation, monetary policy credibility, reserve accumulation, and comprehensive debt restructurings.
Key Indicators Show Improvement
Between end-2022 and end-2025, inflation declined from a peak of 54.1% to 5.4%; gross international reserves (GIR) rose eightfold, and the primary fiscal balance swung from a deficit of 4.3% of Gross Domestic Product (GDP) in 2022 to a surplus of 2.1% in 2025, the Fund said. Historically high gold prices supported reserve accumulation and exchange rate stability.
Vulnerabilities Remain
Despite this progress, the Fund said significant vulnerabilities remain. "Policy credibility is not yet fully entrenched and remains vulnerable to reform fatigue and political-economy pressures," it noted. The fiscal consolidation has relied heavily on spending compression, raising concerns over its sustainability, given Ghana's large development needs, and emerging security pressures.
Financial-Sector Vulnerabilities Persist
The Bretton Woods institution explained that financial-sector vulnerabilities persist, including elevated non-performing loans (NPLs), especially among state-owned banks and some private institutions. The Bank of Ghana (BoG) suffered losses of 1.5% of GDP related to its Domestic Gold Purchase Programme (DGPP), and several state-owned enterprises (SOEs) continue to pose large fiscal risks, underscoring persistent weaknesses in oversight and operational performance.
What's Next for Ghana's Economy?
The IMF's warning highlights the need for Ghana to address its financial-sector vulnerabilities and ensure the sustainability of its fiscal consolidation efforts. The government must continue to implement reforms to strengthen policy credibility and address emerging security pressures. Only then can Ghana's economy achieve lasting stability and growth.
Source: Joy Online
