IMF Endorses Ghana’s Mid-Year Budget Measures, Hails Progress on Inflation Reduction
The International Monetary Fund (IMF) has endorsed measures outlined by Ghana’s Finance Minister, Dr Cassiel Ato Forson, in the 2025 Mid-Year Budget Review, describing them as fully aligned with the objectives of the Fund-supported economic recovery programme.
Speaking during a press briefing in Washington, DC, on Wednesday, July 24, IMF Director of Communications, Julie Kozack, noted that the announced measures will help Ghana fast-track efforts to stabilise its economy and meet the performance targets under the three-year $3 billion Extended Credit Facility (ECF) programme.
“With respect to the budget, I can say that the IMF has welcomed the government’s corrective actions,” said Madam Kozack. “These include a strong 2025 budget and an audit of arrears to quantify and address the pre-election fiscal slippages.”
She further commended the government for improvements in public financial management and the enforcement of public procurement regulations, which she said are enhancing fiscal discipline and improving the broader framework for responsible economic governance.
The IMF also took note of reforms in the energy sector, praising Ghanaian authorities for efforts aimed at addressing structural inefficiencies that have plagued the sector and contributed to fiscal imbalances over the years.
Monetary Policy Developments
On the monetary policy front, the Fund acknowledged Ghana’s significant progress in reducing inflation, a key macroeconomic indicator monitored under the IMF programme.
“Ghana has made good progress since the beginning of the programme in reducing inflation,” Madam Kozack observed. “Inflation, which stood at 54% at the end of 2022, has now dropped to 14% as of June 2025.”
She emphasised that sustaining the downward trend in inflation will require the Bank of Ghana to maintain a tight monetary policy stance to steer inflation back into the central bank’s medium-term target range of 8.0% ± 2 percentage points.
The endorsement from the IMF comes at a critical time as Ghana nears completion of the second review under the ECF programme, with further disbursements of funds contingent on continued policy discipline and reform implementation.
