Ghana to Maintain IMF Programme Amid Fiscal Consolidation Push, Fitch Solutions Says
The ruling National Democratic Congress (NDC) government is expected to maintain fiscal consolidation efforts in line with Ghana’s ongoing International Monetary Fund (IMF) programme, Fitch Solutions has said.
According to the UK-based research firm, it is highly unlikely that the government will withdraw from the IMF arrangement following unsuccessful renegotiation attempts, given the country’s reliance on IMF support for external stability.
“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,” Fitch Solutions stated.
The firm emphasised that IMF funding remains critical for Ghana’s foreign exchange liquidity and underpins investor confidence in the country’s economic management, making it essential for macroeconomic stability.
Fiscal Tightening to Face Public Pushback
Fitch Solutions noted that while fiscal tightening will help stabilise the economy, it is likely to face public resistance. Despite inflation easing from a peak of 53.6% in January 2023 to 23.5% in January 2025, it remains well above the 10-year pre-pandemic average of 12.1%.
The combination of reduced government spending and a higher tax burden is expected to place further strain on household finances, fuelling discontent among the population.
“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.
