IMF Commends Ghana’s Fiscal Discipline as Inflation Falls to Single Digits
IMF says Ghana’s tighter fiscal and monetary policies have strengthened the economy and restored price stability.
- IMF hails Ghana’s improved fiscal discipline and reduced public spending in 2025.
- Inflation drops from 24% in 2024 to 9.4% in September 2025 — the lowest in four years.
- IMF urges continued policy discipline to sustain investor confidence and economic stability.
The International Monetary Fund (IMF) has commended the Ghanaian government for demonstrating strong fiscal discipline in 2025, marking a clear improvement over last year’s spending patterns.
According to the IMF, tighter expenditure controls and prudent fiscal management have significantly reduced budget deficits, eased pressure on the cedi, and enhanced overall price stability. These efforts, the Fund noted, have helped bring inflation down to single digits for the first time in four years.
In an upcoming interview with Channel One TV, IMF Resident Representative to Ghana, Dr. Adrian Alter, highlighted that the combination of fiscal restraint and a tight monetary policy has been crucial to stabilising the economy.
“Fiscal discipline under the current administration is much, much better than last year,” Dr. Alter said, noting that this improvement has helped close fiscal gaps and rein in inflation.
He explained that the government’s cautious spending approach, supported by the Bank of Ghana’s firm monetary policy, has yielded tangible results. Inflation has fallen sharply—from about 24 percent in 2024 to 9.4 percent in September 2025—with further declines expected as the cedi stabilises.
Reflecting on 2024’s inflation surge, Dr. Alter attributed it to supply chain disruptions, currency depreciation, and drought-induced food shortages. He praised the central bank for maintaining policy discipline, including reducing the policy rate from 28 percent to 21.5 percent, which helped preserve gains in price stability.
Dr. Alter concluded that Ghana’s economy now rests on stronger macroeconomic foundations, with fiscal and monetary policies more effectively aligned. However, he cautioned that sustaining this progress will require continued prudence to maintain investor confidence and anchor inflation expectations.
