Government unlikely to pull out of IMF programme; support crucial for foreign exchange liquidity – Fitch Solutions

Fitch Solutions reports that Ghana’s ruling National Democratic Congress (NDC) government will continue fiscal consolidation under the current International Monetary Fund (IMF) programme.

The UK-based firm states that exiting the programme is unlikely due to Ghana’s reliance on IMF support for external stability and investor confidence. While fiscal tightening is expected to stabilize the economy, it may trigger public dissatisfaction.

Inflation has dropped from 53.6% in January 2023 to 23.5% in January 2025 but remains above the pre-pandemic average of 12.1%. Reduced government spending and higher taxes will strain household finances, potentially fueling protests.

However, Fitch Solutions believes such demonstrations will be localized and short-lived, posing minimal risks to businesses.