The International Monetary Fund (IMF) has commended the Ghanaian government for demonstrating stronger fiscal discipline in 2025, describing it as a marked improvement over 2024 when excessive spending and currency depreciation intensified inflationary pressures.
According to the Fund, the government’s tighter spending controls have narrowed the budget deficit, eased pressure on the cedi, and reinforced price stability — key drivers behind Ghana’s return to single-digit inflation for the first time in four years.
In an interview, IMF Resident Representative to Ghana, Dr. Adrian Alter, praised the administration’s cautious fiscal management and the Bank of Ghana’s firm monetary policy stance for restoring macroeconomic stability.
“Fiscal discipline this year is much, much better than the spending last year,” Dr. Alter noted. “That helps shrink the deficit and directly addresses inflation.”
He attributed the positive trend to the government’s restrained spending approach and the central bank’s decision to maintain tight monetary conditions. Ghana’s inflation rate dropped from 24% in 2024 to 9.4% in September 2025, with expectations of further decline as the cedi continues to stabilize.
Dr. Alter added that last year’s high inflation stemmed mainly from supply shocks and a weak currency, citing improvements in both areas this year. He also credited the Bank of Ghana’s prudence in managing monetary policy — including reducing the policy rate from 28% to 21.5% — for easing inflationary pressures.
“Overall, the BoG has kept policy tight and effectively reduced inflation through consistent and prudent measures,” he said.
The IMF representative emphasized that Ghana’s fiscal and monetary policies are now aligned, placing the country on a stronger macroeconomic footing, but cautioned that continued discipline is essential to sustain stability and anchor inflation expectations.
