Ghana’s economic recovery wins IMF backing but fund warns on reforms

The IMF says Ghana’s economic recovery has produced “substantial stabilisation gains”, highlighting falling inflation, stronger fiscal performance and improved reserves, but cautioned against reversing reforms.

The International Monetary Fund said Ghana’s economic recovery has delivered “substantial stabilisation gains”, citing falling inflation, stronger fiscal performance, improved foreign exchange reserves and renewed confidence in the cedi.

The IMF welcomed the progress in a statement that also warned against reversing policy reforms that underpinned the improvement. The fund said maintaining policy discipline was essential to secure the gains and support sustained growth.

Officials highlighted lower inflation and a stronger fiscal position as key indicators of the recovery, along with what they described as improved foreign reserves. The IMF added that confidence in the cedi had recovered as a result of the programme’s measures.

The fund’s comments underline a common message to countries emerging from adjustment programmes: stabilisation gains can be fragile if reforms are rolled back. The IMF did not publish new numerical data in the statement, and authorities did not immediately provide further details.

Ghanaian officials have previously credited the recovery programme with restoring macroeconomic stability, but the IMF’s warning signals that policy continuity will be necessary to lock in progress.

Further updates may follow as Ghana’s economic managers and the IMF continue consultations, but the core message from the fund was to preserve the policy course that helped reduce inflation and shore up reserves.

Source: MyJoyOnline.
Additional reporting by Nukunya News Desk.

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