By Alex Ababio
After more than three years of fiscal reforms, painful debt restructuring, and stringent economic adjustments, Ghana has reached a significant milestone in its economic recovery journey. The Executive Board of the International Monetary Fund (IMF) has completed the sixth and final review of Ghana’s 39-month Extended Credit Facility (ECF) arrangement, approved the conclusion of the 2026 Article IV Consultation, and reviewed the country’s request for a new 36-month Policy Coordination Instrument (PCI).
The decision unlocks a final disbursement of SDR 265.9 million (approximately US$371 million), bringing total IMF support under the ECF programme to about US$3 billion.
Beyond the financial support, the IMF’s latest assessment paints a picture of an economy that has made substantial progress in restoring macroeconomic stability. However, it also warns that Ghana’s next challenge will be sustaining these gains through continued fiscal discipline, stronger governance, financial sector reforms, and prudent economic management.
Ghana’s IMF Programme Reaches Its Final Stage
According to the IMF Executive Board, Ghana’s overall performance under the ECF-supported programme has been “broadly satisfactory.”
The Board noted that sustained reforms undertaken by the government, together with favourable global commodity prices, particularly for gold, have significantly improved the country’s macroeconomic outlook.
Since the programme was approved in May 2023, Ghana has recorded substantial progress in stabilising its economy following one of the country’s worst economic crises in decades.
The IMF indicated that inflation has declined sharply, foreign exchange reserves have increased significantly, fiscal balances have improved, while Ghana’s debt sustainability outlook has strengthened considerably.
The Executive Board also completed the 2026 Article IV Consultation and reviewed the government’s request for a 36-month non-financing Policy Coordination Instrument (PCI).
Unlike the Extended Credit Facility, the PCI does not provide additional financing. Instead, it serves as a policy framework designed to anchor Ghana’s reform agenda, strengthen policy credibility, and support efforts to attract donor assistance and private investment.
Why Ghana Received a Waiver
One of the few concerns identified during the review involved a temporary breach of the performance criterion relating to the Bank of Ghana’s lending to the central government and public entities.
According to the IMF, the breach occurred because of temporary cost-sharing arrangements associated with the Domestic Gold Purchase Programme (DGPP).
The Executive Board approved a waiver after determining that:
– the deviation was small;
– it was temporary;
– corrective measures had already been implemented by the authorities.
As a result, the final review was successfully completed, paving the way for the release of the last IMF disbursement.
Ghana’s Economy Records Strong Growth
One of the most encouraging aspects of the IMF assessment is Ghana’s economic growth performance.
According to the report:
– Real GDP grew by 6.0 percent in 2025.
– Growth accelerated further to 6.4 percent year-on-year during the first quarter of 2026.
The IMF attributed this performance to broad-based economic activity across multiple sectors.
The figures suggest that Ghana’s economy has rebounded more strongly than anticipated following the severe economic disruptions that led to the IMF bailout.
Inflation Falls Dramatically
Inflation, which had previously placed enormous pressure on households and businesses, has fallen substantially.
The IMF reported that:
– headline inflation declined to 5.4 percent at the end of 2025;
– inflation eased further to 5.3 percent in June 2026.
According to the Fund, this improvement reflects:
– prudent monetary policy by the Bank of Ghana;
– appreciation of the Ghana cedi;
– improved domestic food supply.
The decline places inflation within the Bank of Ghana’s target range and marks one of the strongest indicators of Ghana’s macroeconomic recovery.
Foreign Exchange Reserves Nearly Double
The IMF also highlighted major improvements in Ghana’s external position.
According to the report, the country’s:
– current account recorded a surplus of 7.9 percent of GDP in 2025;
– gross international reserves nearly doubled to US$11.9 billion by the end of 2025.
These reserves now cover approximately four months of imports, strengthening Ghana’s capacity to withstand external economic shocks.
The IMF attributed the improvement largely to historically high global gold prices, which significantly boosted export earnings.
Fiscal Position Improves Significantly
Another major achievement identified by the IMF concerns Ghana’s fiscal performance.
The report indicates that the country’s primary fiscal balance improved to a surplus of 2.1 percent of GDP.
This marks a dramatic turnaround from the large deficits recorded before the IMF programme began.
For 2026, the government has targeted a primary surplus of 1.5 percent of GDP, which the IMF believes remains consistent with Ghana’s fiscal responsibility framework.
The Fund also noted that improved debt dynamics have created limited fiscal space that could enable Ghana to:
– strengthen social protection;
– address development priorities;
– increase critical public investment;
while maintaining debt sustainability.
Looking ahead, the IMF stated that reducing the primary surplus target to 0.5 percent of GDP from 2027 could remain consistent with maintaining debt sustainability, provided further reforms continue in revenue mobilisation, public financial management, investment management, and oversight of state-owned enterprises.
Debt Sustainability Improves
Perhaps one of the most significant developments contained in the report is Ghana’s improved debt outlook.
The IMF stated that Ghana’s risk of external and overall debt distress has now been upgraded from high to moderate, two years earlier than originally projected.
According to the report, this improvement reflects significant progress in Ghana’s debt restructuring programme.
Debt relief agreements consistent with the Official Creditor Committee framework have already been signed with more than half of Ghana’s bilateral creditors.
Similarly, agreements in principle have been reached with a comparable proportion of external commercial creditors.
The IMF said negotiations continue with the remaining commercial creditors in good faith to achieve restructuring consistent with programme parameters.
Bank of Ghana Commended
The IMF praised the Bank of Ghana for successfully managing inflation while rebuilding external reserves.
According to the Executive Board, the central bank has cautiously eased monetary policy as inflation returned to target.
The IMF further noted that, working closely with Fund staff, the Bank of Ghana has implemented a foreign exchange operations framework designed to:
– intermediate foreign exchange flows;
– smooth excessive exchange-rate volatility;
– support continued reserve accumulation.
However, the Fund stressed that preserving the independence of the central bank remains essential.
The IMF called for:
– completion of the transfer of the Domestic Gold Purchase Programme to GoldBod;
– permanent discontinuation of quasi-fiscal activities;
– implementation of the Bank of Ghana recapitalisation plan by 2032.
Financial Sector Still Faces Challenges
Despite improvements across the banking sector, the IMF cautioned that vulnerabilities remain.
The report notes that some:
– state-owned banks;
– private banks;
– specialised deposit-taking institutions
continue to face challenges.
The IMF urged authorities to strengthen supervision, implement corrective measures promptly, and finalise the country’s crisis management and bank resolution framework to safeguard financial stability and support stronger credit growth.
Governance and Anti-Corruption Reforms Continue
Beyond macroeconomic indicators, the IMF highlighted progress in governance reforms.
The report specifically referenced the submission to Parliament of the revised Conduct of Public Officials Bill.
The Executive Board stated that effective implementation of the new asset declaration framework will be essential to improving transparency, accountability and public confidence in public institutions.
IMF’s Overall Assessment
Summarising the Executive Board’s conclusions, IMF Deputy Managing Director Bo Li stated that Ghana’s performance under the ECF-supported programme has been broadly satisfactory.
He said the authorities’ sustained reform efforts, combined with favourable commodity-price developments, had delivered substantial gains in macroeconomic stability and debt sustainability.
According to the Executive Board’s assessment, inflation has fallen sharply, foreign exchange reserves have exceeded programme targets, the fiscal position has shifted from a large deficit to a surplus, and debt restructuring is largely complete.
The IMF emphasised, however, that continued implementation of reforms under the new Policy Coordination Instrument will be critical to preserving these achievements.
The Executive Board further stressed that maintaining fiscal discipline remains essential to balancing Ghana’s development, social and security priorities with long-term debt sustainability.
The IMF also underscored the need to strengthen domestic revenue mobilisation, improve public financial and investment management, enhance oversight of state-owned enterprises—particularly in the energy and cocoa sectors—and continue expanding social protection for vulnerable populations.
Finally, the Fund reiterated that safeguarding the independence of the Bank of Ghana, strengthening financial sector supervision, completing governance reforms, and enacting the revised Conduct of Public Officials Bill will be crucial for sustaining investor confidence, improving accountability, and supporting durable, private sector-led economic growth in the years ahead.
As Ghana transitions from the financing phase of the Extended Credit Facility to the policy-focused framework under the new Policy Coordination Instrument, the IMF’s latest review suggests that the country’s immediate economic crisis has eased considerably. The greater challenge now lies in maintaining reform momentum, safeguarding fiscal discipline, and translating macroeconomic stability into sustained job creation, inclusive growth, and improved living standards for Ghanaians.