IMF applauds Ghana’s macroeconomic gains, warns of lingering risks
The International Monetary Fund (IMF) has commended Ghana for making significant strides in restoring macroeconomic stability and improving debt sustainability under the Extended Credit Facility (ECF) programme, while cautioning that important vulnerabilities continue to threaten the durability of the recovery.
In its 2026 Article IV Consultation on Ghana, the Fund said the ECF-supported programme, approved in May 2023, has played a critical role in easing severe financing pressures and restoring economic stability through fiscal consolidation, credible monetary policy, stronger foreign exchange reserves and comprehensive debt restructuring.
According to the IMF, Ghana’s economic indicators have improved markedly over the past three years. Inflation fell sharply from a peak of 54.1 per cent at the end of 2022 to 5.4 per cent by the end of 2025, while gross international reserves expanded eightfold over the same period.
The country also recorded a significant turnaround in its public finances. The primary fiscal balance improved from a deficit of 4.3 per cent of Gross Domestic Product (GDP) in 2022 to a surplus of 2.1 per cent in 2025, reflecting the impact of fiscal adjustment measures implemented under the programme.
The Fund attributed part of the improvement in Ghana’s external position to favourable global gold prices, which boosted export earnings, strengthened reserve accumulation and supported exchange rate stability.
“Historically high gold prices supported reserve accumulation and exchange rate stability. Against this backdrop, the implementation of the 2023 Article IV consultation recommendations has been broadly satisfactory”, it pointed out.
Despite the encouraging progress, the IMF stressed that Ghana’s economic recovery remains exposed to a number of risks that require sustained policy attention.
“Policy credibility is not yet fully entrenched and remains vulnerable to reform fatigue and political-economy pressures”.
The Fund observed that much of the fiscal consolidation achieved so far has been driven by expenditure restraint, raising concerns about the long-term sustainability of the strategy given the country’s substantial infrastructure and development needs, as well as emerging security challenges.
It further noted that weaknesses within the financial sector continue to pose risks to economic stability. Elevated levels of non-performing loans remain a concern, particularly among state-owned banks and some privately owned financial institutions.
The IMF also highlighted financial losses incurred by the Bank of Ghana under its Domestic Gold Purchase Programme (DGPP), stating that the central bank recorded losses equivalent to 1.5 per cent of GDP linked to the initiative.
In addition, the Fund warned that several state-owned enterprises continue to present considerable fiscal risks, pointing to persistent governance and operational challenges that require stronger oversight and reforms.
While acknowledging the substantial progress made under the ECF programme, the IMF maintained that preserving macroeconomic stability and ensuring debt sustainability will require continued commitment to structural reforms, prudent fiscal management and measures aimed at strengthening financial sector resilience.
