Ghana fell short of key economic targets under the International Monetary Fund (IMF) supported programme for 2024, Finance Minister Dr. Cassiel Ato Forson has revealed.
Presenting the 2025 Budget to Parliament on Tuesday, March 11, 2025, he acknowledged that the government failed to meet critical indicators such as the primary balance, inflation, and social protection spending. These shortfalls, he warned, could have serious consequences for the country’s economic recovery.
According to him, the IMF’s upcoming 4th review in April 2025 will assess Ghana’s performance against agreed targets, but early indications suggest that the country did not meet its commitments.
“Key performance indicators to be assessed by the IMF staff in the upcoming 4th review of the Programme scheduled for April 2025 such as the primary balance (commitment), inflation, and social protection spending for end-December 2024, are likely missed,” he told Parliament.
Inflation and Fiscal Deficit Worsen
The Finance Minister also noted that inflation, which was expected to decline, instead worsened in 2024. The government had projected an inflation target of 15%, while the IMF had set a central target of 18%. However, the actual figure stood at 23.8%, far exceeding both projections. As a result, Ghana will have to engage the IMF under its Monetary Policy Consultation Clause to discuss the implications.
“The 2024 end-period inflation also exceeded the budget target of 15% by 8.8 percentage points and the IMF central target of 18% by 5.8 percentage points. This has triggered a discussion with the IMF under the Monetary Policy Consultation Clause,” Dr. Forson stated.
Beyond inflation, the government’s financial position also weakened. Instead of recording a surplus as planned, Ghana ended the year with a significant deficit. The original target was to achieve a 0.5% of GDP surplus, but instead, the country recorded a 3.9% deficit—a drastic fiscal slippage of 4.4 percentage points. “Sadly, the previous government recorded a deficit of 3.9% of GDP. This represents a slippage of a whopping 4.4 percentage points,” he lamented.
Despite the setbacks, Dr. Forson assured Ghanaians that the government remains committed to stabilizing the economy, controlling inflation, and restoring fiscal discipline. He emphasized that the Mahama administration will introduce bold policy reforms to get the country back on track.
