Inflation tamed, reserves rebuilt: Ghana’s economic revival gains global recognition

Ghana’s economy is showing remarkable signs of recovery, drawing commendation from the International Monetary Fund (IMF) as the country advances toward the successful completion of its ongoing programme.

Bank of Ghana Governor, Dr. Johnson Asiama, has assured that Ghana is firmly on track to exit the current IMF programme by next year—well ahead of initial expectations.

Speaking during an interaction with Abebe Selassie, the IMF’s Director of the African Department, on the sidelines of the IMF/World Bank Annual Meetings in Washington DC, Dr. Asiama expressed confidence in the country’s economic trajectory.

He noted that Ghana is currently ahead of most of the performance benchmarks and structural targets agreed upon under the IMF programme, adding that recent macroeconomic indicators reveal strong and sustained recovery.

According to Dr. Asiama, “The country has worked hard to undertake the necessary reforms to stabilise the economy. The current developments show that we have delivered and turned things around.”

IMF Targets

Ghana entered into a three-year Extended Credit Facility (ECF) programme with the IMF in 2023, following a period of severe fiscal stress and external shocks that weakened the economy. The programme, which is expected to end in May 2026, provided a critical financial buffer of over US$3 billion to help restore macroeconomic stability and confidence.

However, Dr. Asiama revealed that Ghana’s performance has been stronger than projected, allowing the government to fast-track several reform targets.

“When this administration took over, there were doubts about whether we could carry on with the programme. But we have proven that we can deliver,” he emphasized.

Reports of a possible extension of the IMF arrangement had surfaced earlier, with some analysts suggesting it might be necessary to reassure investors and development partners. Yet, Dr. Asiama’s remarks have allayed such fears, reaffirming that Ghana is on course to exit the programme on schedule, or even earlier.

Single Digits

One of the clearest indicators of Ghana’s economic turnaround has been the sharp decline in inflation, which stood at a worrying high in 2023 and 2024.

Through a series of coordinated policy measures by the Bank of Ghana, inflation has now dropped to 9.4 percent as of September 2025 – the lowest in several years and within the central bank’s target band.

Dr. Asiama explained that the Bank of Ghana took bold steps to restore price stability by tightening monetary policy and enhancing liquidity management.

“We met an economy that was challenged, with high levels of inflation, and this was our priority when this administration took over,” he stated.

The central bank raised its monetary policy rate multiple times during the reform period to curb inflationary pressures and maintain exchange rate stability. These actions, coupled with fiscal consolidation by the government, have contributed to restoring confidence in the economy.

“Our policies going forward will be data-driven and adaptable to changes in the economy,” the Governor noted, emphasizing that sustaining single-digit inflation will remain the central bank’s focus.