Ghana on track for fiscal turnaround by end of 2025

Ghana on track for fiscal turnaround by end of 2025 - IMF

Ghana’s economic outlook is showing signs of improvement as inflation slows and the Cedi regains strength. These positive shifts have allowed the Bank of Ghana to start lowering interest rates carefully. Meanwhile, authorities are pushing ahead with reforms to stabilise public finances and the banking sector by 2025.

The Bank of Ghana has introduced a new structured foreign exchange framework to manage currency flows more effectively. This system aims to reduce market volatility, build up international reserves, and ensure smoother transactions. At the same time, the central bank has rolled out a restructuring and reform programme for state-owned banks to restore financial stability.

Authorities have also taken broader steps to protect the financial system. These include closing gaps in the crisis management framework, cutting down on non-performing loans, and enforcing stricter oversight of state-owned enterprises. The government is working to strengthen fiscal discipline by improving revenue collection, tightening public spending, and ensuring better financial management.

Ghana remains on course to achieve a primary surplus of 1.5% of GDP by the end of 2025. This target relies on higher revenue mobilisation and controlled expenditure, while still protecting support for vulnerable groups. The 2026 budget has been designed to align with these fiscal goals, balancing development priorities and security needs within the new fiscal responsibility framework.

With inflation easing and the Cedi strengthening, the Bank of Ghana has begun a gradual reduction in interest rates. The planned primary surplus and ongoing reforms in banking and public finance aim to place the economy on a more stable footing. If maintained, these measures could reduce Ghana’s financing needs and support long-term growth.