The International Monetary Fund (IMF) has praised Ghana’s effective coordination between fiscal and monetary authorities, describing it as the key driver behind the country’s recent macroeconomic turnaround.
According to the Fund, the government’s prudent expenditure management, coupled with the Bank of Ghana’s disciplined monetary policy, has restored investor confidence, stabilised the cedi, and driven inflation down to single digits for the first time in four years.
Speaking ahead of an interview on Citi TV’s Point of View with Bernard Avle, the IMF’s Resident Representative to Ghana, Dr. Adrian Alter, said the alignment between fiscal restraint and monetary tightening has been instrumental in reversing last year’s economic imbalances.
“When you look at fiscal discipline this year, it’s much, much better than the spending pattern last year,” Dr. Alter noted.
“That basically helps to shrink the budget gap and address the issue of inflation.”
Ghana’s inflation rate, which peaked at about 24% in 2024, has now eased to 9.4% as of September 2025, while the cedi has appreciated by over 37% against the U.S. dollar, according to Bank of Ghana data.
Dr. Alter attributed the gains to a mix of policy prudence and external tailwinds. He noted that while last year’s inflation was aggravated by drought-induced food shortages and sharp currency depreciation, this year’s performance reflects improved fiscal discipline and effective monetary management.
“Last year you had the drought, and that impacted massively on food prices. The other component was the exchange rate – it was depreciating last year, while this year it’s appreciating,” he explained.
He lauded the Bank of Ghana for maintaining a consistent anti-inflation stance, gradually cutting its policy rate from 28% to 21.5% only after signs of sustained price stability had emerged.
“Overall, the BoG has kept its monetary policy consistently tight and managed to reduce inflationary pressures through these prudent policies,” Dr. Alter stated.
The IMF noted that Ghana’s current trajectory puts it on a “stronger macroeconomic footing,” though maintaining fiscal and monetary coordination will be critical to consolidating gains ahead of 2026.
Economists believe that if this policy alignment is sustained, Ghana could unlock fresh growth opportunities under its 24-hour economy initiative and attract renewed foreign investment.
