IMF reaches staff-level agreement with Ghana after first PCI review

The International Monetary Fund (IMF) has reached a staff-level agreement with Ghana following the completion of the first review of the country’s 36-month Policy Coordination Instrument (PCI). An IMF mission, led by Ruben Atoyan, reported that Ghana’s economic recovery is strengthening, with real GDP growth reaching 6.2% in the first half of 2026. Based on this robust performance, the fund has projected a full-year growth rate of 5.7% for 2026, noting that the expansion has been primarily driven by increased investment.

The fund’s assessment highlighted significant progress in macroeconomic stability, specifically pointing to a drop in inflation to 5.5% in October. This figure sits comfortably below the Bank of Ghana’s target range of 6% to 10%. Consequently, the IMF has endorsed the overarching objectives of the government’s upcoming 2027 Budget, which focuses on converting fiscal gains into tangible infrastructure, job creation, and social investment. To support these goals, the fund outlined plans for a primary surplus of 0.5% of GDP while emphasizing the necessity of rigorous project appraisals and strict expenditure controls to maintain current momentum.

Despite the positive outlook, the mission raised concerns regarding vulnerabilities in the external sector, most notably a decline in foreign exchange reserves. The IMF cautioned that urgent structural reforms and continued fiscal discipline are required to rebuild these reserves and protect the economy from external shocks. While the majority of quantitative targets under the technical cooperation program were met, the fund urged the government to adopt further governance measures to strengthen public trust and ensure the long-term sustainability of economic reforms.

Deputy Finance Minister Thomas Nyarko Ampem reaffirmed the government’s commitment to achieving macroeconomic stability and enhancing financial inclusion as the Finance Ministry prepares to present the 2027 Budget to Parliament on November 12. The PCI remains a non-financing program designed for technical cooperation and policy signaling, which the government intends to use to solidify its economic strategy and foster a stable environment for private-sector growth.