The International Monetary Fund (IMF) has reached a staff-level agreement with Ghanaian authorities on the first review of the country's 36-month program supported by the Policy Coordination Instrument (PCI). The agreement, led by IMF staff team head Ruben Atoyan, is subject to approval by IMF Management and the Executive Board. Discussions were held in Accra from October 22 to November 4, 2026. This development is a significant milestone in Ghana's economic reform program.
Ghana's economy has shown resilience, with low inflation, strong growth, and policy buffers that have helped it weather current external turbulence. Real GDP grew by 6.2 per cent year-on-year in the first half of 2026, driven by investment, and is projected at 5.7 per cent for the year. Inflation stood at 5.5 per cent in October and remains below the Bank of Ghana's target band of 8±2 per cent. The country's fiscal position is strong, with the primary surplus on track to meet the end-year program target.
The IMF noted that program performance has been broadly satisfactory, with most quantitative targets met and structural reforms progressing well. The authorities have taken corrective actions in response to the decline in foreign exchange reserves in recent months. These actions include moving foreign exchange intermediation from the Bank of Ghana to GoldBod and implementing a higher gold sale requirement for large-scale miners. The IMF emphasized that steadfast implementation of these measures will be essential to rebuild reserves.
Structural reforms in Ghana remain on track, with several key initiatives underway. The authorities have published the Fiscal Strategy Document, obtained parliamentary approval of the new Cocoa Board Act, and continued quarterly electricity tariff adjustments. They have also completed a comprehensive review of customs and excise legislation ahead of schedule. Additionally, work is advancing on reforming the Bank of Ghana's liquidity management framework and operationalising the Fiscal Council.
The 2027 Budget aims for a primary surplus of 0.5 per cent of GDP on a commitment basis, supported by revenue measures already approved by Parliament in July. The fiscal space created will be used for investment focused on job creation and closing the infrastructure gap. The IMF stressed that rigorous project appraisal, competitive procurement, and strict expenditure controls will be critical to ensure value for money and preserve debt sustainability.
Despite the progress, the IMF warned that vulnerabilities persist, particularly from the external sector. Ghana remains exposed to volatility in gold, cocoa, and oil prices, as well as geopolitical tensions and tighter global financial conditions. Domestic risks include significant domestic debt rollover needs and fiscal pressures from the energy, cocoa, and gold sectors. Prudent monetary policy and greater exchange rate flexibility will be essential to safeguarding stability.
The IMF also highlighted the importance of strengthening governance in Ghana. The adoption of the Conduct of Public Officers Bill and publication of the second National Ethics and Anti-Corruption Action Plan will help build public trust and support private investment. The IMF's agreement with Ghana is a positive development, but the country still faces significant challenges in maintaining economic stability and promoting sustainable growth.
Key points
- The IMF has reached a staff-level agreement with Ghana on the first review of its 36-month Policy Coordination Instrument program.
- Ghana's economy has shown resilience, with real GDP growth of 6.2 per cent year-on-year in the first half of 2026.
- The IMF emphasized that steadfast implementation of measures to rebuild foreign exchange reserves will be essential to maintaining economic stability.
