The International Monetary Fund (IMF) Executive Board has completed the fourth review of Ghana's Extended Credit Facility (ECF) Arrangement, originally approved in May 2023. This completion allows for an immediate disbursement of approximately US$367 million, increasing Ghana’s total disbursements under the arrangement to about US$2.3 billion.
Economic growth in Ghana exceeded expectations in 2024 and early 2025, driven by strong performances in mining, agriculture, ICT, manufacturing, and construction sectors. The external sector improved due to solid exports of gold and oil and increased remittances. However, despite these gains, fiscal performance declined at the end of 2024 due to election-related spending.
To address fiscal challenges from 2024 slippages, Ghana's new authorities have implemented corrective measures aiming for a fiscal primary surplus of 1½ percent of GDP in 2025. These include revenue mobilization and expenditure rationalization while protecting vulnerable populations. Public financial management reforms are underway to align spending with resources through budget controls and audits.
Deputy Managing Director Bo Li stated: “Faced with large policy slippages and reform delays at end-2024, the new administration has taken bold corrective actions to maintain the program on track.” He emphasized the importance of continued efforts towards fiscal adjustment and debt restructuring for sustainability.
Ghana is also progressing on public debt restructuring under a Memorandum of Understanding with its Official Creditors Committee within the G20 Common Framework. Efforts continue towards agreements with commercial creditors.
Monetary policy has been tightened by the Bank of Ghana (BoG) to curb inflation while rebuilding reserves. The BoG is addressing banking system stability through intensified monitoring and recapitalization measures for weak banks.
Li further noted: “The authorities have made significant strides toward rebuilding international reserves and taken steps to bring inflation down.” He highlighted ongoing efforts needed for financial sector stability including strengthening state-owned banks’ viability.
Ambitious structural reforms are essential for private sector investment growth, governance enhancement, and transparency improvements. These efforts aim to boost economic potential and sustainable job creation.
In summary, maintaining macroeconomic policy adjustments is crucial for restoring stability while promoting economic growth and poverty reduction in Ghana.