Ghana showing better fiscal discipline in 2025 – IMF

The International Monetary Fund (IMF) has commended government for demonstrating stronger fiscal discipline in 2025.

The current administration’s spending controls according to the Fund is a significant improvement over 2024, when higher expenditure and exchange rate depreciation fuelled inflationary pressures.

According to the IMF, the improved fiscal performance has helped narrow the budget deficit, ease pressure on the cedi and reinforce price stability – key factors driving the country’s sharp decline in inflation to single digits for the first time in four years.

Speaking on a yet to be aired interview on the Point of View with Bernard Avle, IMF Resident Representative to Ghana, Dr. Adrian Alter, said the combination of fiscal restraint and tight monetary policy has been crucial in restoring stability.

“When you look at other issues, for instance, fiscal discipline this year is much, much better by the current government than the spending last year,” Dr. Alter noted.

“And that basically helps as well to shrink this gap and to basically address the issue of inflation,” he added.

He explained that the government’s cautious approach to spending, alongside the Bank of Ghana’s firm monetary stance, has yielded results.

Ghana’s inflation fell from about 24% in 2024 to 9.4% in September 2025, with expectations of further moderation as the cedi stabilises.

Dr. Alter observed that last year’s inflation surge was mainly driven by supply shocks and a weak currency, saying, “Last year you had the drought and that impacted massively food prices. The other component was the exchange rate. Exchange rate was depreciating last year while this year is appreciating.”

He credited the central bank’s prudent handling of monetary policy by maintaining a tight stance by cutting the policy rate from 28% to 21.5% to lock in these gains.

“Overall, the BoG has kept its monetary policy consistently tight and basically managed to reduce the inflationary pressures through these prudent policies,” he said.

With Ghana’s fiscal and monetary policies now moving in sync, the IMF representative said the country is “on a stronger macroeconomic footing,” though he stressed that sustaining discipline will be important to keeping inflation expectations well anchored.