IMF gives Ghana’s economic recovery a strong endorsement

The International Monetary Fund has strongly endorsed Ghana’s economic recovery, citing robust growth, low inflation, and stronger public finances.

In a statement issued Thursday, the Fund’s staff said stability was taking hold. They also announced a staff-level agreement on the first review of Ghana’s Policy Coordination Instrument (PCI).

“Macroeconomic stability is becoming entrenched,” mission chief Ruben Atoyan said after discussions in Accra from October 22 to November 4.

The agreement requires approval from IMF Management and the Executive Board.

Ghana’s economy grew by 6.2 per cent in the first half of 2026, driven by investment. The Fund projects 5.7 per cent growth for the full year.

Inflation stood at 5.5 per cent in October, below the Bank of Ghana’s target range of six to 10 per cent.

“The fiscal position is strong, with the primary surplus on track to meet the end-year program target, and public debt remains low following rapid declines in recent years.”

The IMF said these gains and accumulated buffers had helped Ghana partly absorb the external shock from the war in the Middle East.

“Performance under the PCI has been broadly satisfactory. Most quantitative targets under this review are met.”

The assessment follows Ghana’s completion of its $3 billion Extended Credit Facility programme. The IMF Board concluded the sixth and final review on July 27, 2026.

Ghana’s exit was from the financing programme. Its engagement with the Fund continues through the 36-month PCI, which provides a framework for policy coordination and reform monitoring without new financing.

The latest endorsement also carries warnings.

Foreign exchange reserves have declined in recent months. The authorities have responded by moving foreign exchange intermediation from the Bank of Ghana to GoldBod. They have also raised the gold sale requirement for large-scale miners.

The IMF said consistent implementation and greater exchange rate flexibility would be essential to rebuild reserves.

Structural reforms remain on track. Progress includes parliamentary approval of a new Cocoa Board Act and continued quarterly adjustments to electricity tariffs.

However, publication of the audit of ECG’s collection accounts remains delayed.

“The 2027 Budget is built on strong foundations.”

The budget targets a primary surplus of 0.5 per cent of GDP. Fiscal space will support investment, jobs and infrastructure. The Fund stressed the need for rigorous project appraisal, competitive procurement and strict spending controls.

Risks persist from commodity price swings, global financial conditions and domestic debt refinancing. Fiscal pressures in the energy, cocoa and gold sectors also threaten stability.

The IMF urged stronger reserve buffers, prudent monetary policy and improved governance to protect the recovery.