UK-based research firm Fitch Solutions has indicated that Ghana’s government is expected to persist with its fiscal consolidation efforts as part of the nation’s ongoing International Monetary Fund (IMF) programme.
The firm stressed that given Ghana’s heavy reliance on IMF support for external stability, it is highly unlikely the government will forgo the IMF arrangement despite earlier unsuccessful renegotiation attempts.
They asserted: “We think it is highly unlikely that the authorities will pull out of the programme following unsuccessful renegotiation attempts, given Ghana’s reliance on IMF assistance for external stability.”
The firm also stated that the IMF funding is vital for sustaining Ghana’s foreign exchange liquidity and upholding investor confidence in the nation’s economic management, which is crucial for overall macroeconomic stability.
On the note of fiscal tightening, Fitch Solutions noted that while such measures are intended to stabilize the economy, they are expected to be met with public resistance. Even though inflation has fallen from a peak of 53.6% in January 2023 to 23.5% in January 2025, it still remains significantly above the 10-year pre-pandemic average of 12.1%.
The combined impact of reduced government spending and increased taxation is likely to further strain household finances and fuel public discontent. “This will keep protest activity high by historical standards, although we note that demonstrations will remain localised and short-lived, posing minimal risks to commercial operations,” Fitch Solutions added.
