IMF Confirms Ghana’s Progress Toward 0.5% Primary Surplus Amid Economic Challenges
The International Monetary Fund (IMF) has affirmed Ghana’s progress toward achieving a primary fiscal surplus of 0.5% of Gross Domestic Product (GDP) on a commitment basis, despite emerging spending pressures linked to a dry spell and ongoing challenges in the energy sector.
This assessment follows the IMF Executive Board’s completion of the third review of Ghana’s 36-month Extended Credit Facility (ECF) Arrangement.
Fiscal Outlook and Commitment to Reforms
Looking ahead, the IMF reported that Ghana’s authorities remain committed to advancing fiscal consolidation efforts. A primary fiscal surplus of 1.5% of GDP is projected for 2025, underpinned by measures such as enhanced domestic revenue mobilization and rationalization of non-priority expenditures.
The government also plans to expand social programs to mitigate the impact of policy adjustments on vulnerable populations.
The IMF emphasized the importance of fiscal responsibility, noting that Ghana’s progress hinges on modernizing its fiscal framework, strengthening revenue administration, and improving the management of State-Owned Enterprises (SOEs). Addressing challenges in the energy and cocoa sectors also remains a key priority.
Monetary Policy and Financial Stability
The IMF commended the Bank of Ghana (BoG) for its prudent monetary policy stance, which has contributed to a sustained reduction in inflation despite heightened risks. It also noted the BoG’s measures to rebuild international reserves and bolster financial sector stability.
“The BoG has intensified actions to promote timely recapitalization and sustain the viability of banks. Additionally, the government has begun recapitalizing state-owned banks in alignment with available resources,” the IMF highlighted.
Approval of $360 Million Bailout Package
Following the third review of the ECF arrangement, the IMF approved the disbursement of Special Drawing Rights (SDR) 269.1 million, equivalent to approximately $360 million to Ghana.
The IMF noted that the policies and reforms implemented under the program continue to yield positive results, marking a critical milestone in Ghana’s economic recovery journey.
