The International Monetary Fund projects Ghana’s economy will grow 5.7% in 2026, following a 6.2% expansion in the first half of the year, according to the IMF. The projection comes after Ghana completed its $3 billion Extended Credit Facility program and reached a staff-level agreement on a new Policy Coordination Instrument, the IMF said.
The staff-level agreement on the new Policy Coordination Instrument follows an IMF delegation’s visit to Accra from Oct. 22 to Nov. 4, according to the fund. The PCI is a 36-month program that allows for continued policy monitoring without providing additional financing, the IMF said.
Inflation in Ghana fell to 5.5% in October, dipping below the Bank of Ghana’s target range of 6% to 10%, according to the IMF.
IMF mission chief Ruben Atoyan said “macroeconomic stability is becoming entrenched” following the completion of the $3 billion Extended Credit Facility program, whose sixth and final review was concluded by the IMF Executive Board on July 27.
The IMF described implementation of the PCI as broadly satisfactory, with most quantitative targets met. The primary surplus is on track to meet the end-year program target, and the IMF welcomed Ghana’s 2027 Budget, which targets a primary surplus of 0.5% of GDP. The fund said the budget is “built on strong foundations” but cautioned against weaknesses in expenditure management.
Public debt remains at relatively low levels following rapid declines in recent years, according to the IMF.
The IMF expressed concern about a recent decline in Ghana’s foreign exchange reserves. The government has transferred foreign exchange intermediation from the Bank of Ghana to GoldBod and increased gold sale requirements for large-scale mining companies, according to the fund. The IMF considers these steps, along with greater exchange rate flexibility, necessary to rebuild reserve buffers.
Parliament has approved a new Cocoa Board Act, and quarterly electricity tariff reviews continue, according to the IMF. The publication of the audit report on the Electricity Company of Ghana’s collection accounts remains an outstanding commitment under the program.
The IMF identified potential setbacks to the recovery, including volatile commodity prices, shifts in global financial conditions, and domestic debt refinancing pressures. Challenges in the energy, cocoa, and gold sectors could place additional demands on government finances, the fund said.
The IMF urged authorities to rebuild reserves, sustain prudent monetary policies, and strengthen governance and institutional reforms.
The staff-level agreement is subject to approval by IMF Management and the Executive Board before becoming final, according to the fund.
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