As the country nears the completion of the $3billion Extended Credit Facility (ECF) of the International Monetary Fund (IMF), the fund has confirmed that Ghana’s economy is regaining strength after the fiscal slippages that threatened progress at the end of 2024.
This new verdict on Ghana’s economy offers fresh reassurance that the country’s recovery is on track.
In its fifth review of Ghana’s IMF-supported programme, the Fund says reforms introduced under the programme are now delivering clear results, reversing the deterioration flagged in the fourth review.
In the fourth review carried out in mid-2025, the Fund uncovered that late in 2024, the country’s performance was weakening, pointing to fiscal slippages and growing pressures that risked undoing earlier gains. Those concerns raised fears that the country’s hard-won economic stability could slip away again.
One year on, the story has changed. According to the IMF, economic growth through September 2025 exceeded expectations, powered largely by strong activity in the services and agriculture sectors.
These improvements have translated into steadier business activity, better harvests, and a gradual return of consumer confidence.
Inflation, which had severely eroded purchasing power in recent years, is now back within the Bank of Ghana’s target range, recording a single-digit since 2021. This has eased pressure on prices and helped stabilize everyday costs, from food to transportation.
The Bretton-Woods Institution also emphasized a stronger external sector. Gold and cocoa exports performed well, supporting foreign exchange inflows and boosting reserves. As a result, Ghana’s reserves accumulation exceeded programme targets, and the cedi recorded an appreciation, easing the cost of imports and foreign debt servicing.
More importantly, the Fund noted a significant improvement in Ghana’s debt trajectory. This signals that the country is moving toward a more sustainable debt position after years of heavy borrowing and restructuring.
“Ghana’s IMF-supported reforms are yielding results after last year’s policy slippages. Growth through September 2025 exceeded expectations, driven by strong services and agriculture. Inflation is now within the Bank of Ghana’s target range, and the external sector strengthened on robust gold and cocoa exports. Reserves accumulation surpassed ECF targets, the cedi appreciated, and Ghana’s debt trajectory improved significantly,” the review report remarked.
The IMF, therefore, described Ghana’s progress as “generally satisfactory” from a deteriorating report in the previous review.
All quantitative performance criteria and indicative targets for the fifth review were met, showing stronger fiscal discipline compared to the previous year.
While some structural reforms were delayed, the Fund said good progress has been made, including on measures that had been overdue from earlier reviews.
The IMF’s assessment suggests the economy has not only stabilized but is slowly rebuilding momentum after a difficult period. However, it also serves as a reminder that discipline matters as the setbacks of late 2024 show how quickly gains can be reversed.
