By Spendilove Incoom
Ghana’s economy remains under significant strain despite progress made under the ongoing IMF-supported programme, Finance Minister Dr. Cassiel Ato Forson has revealed.
“Mr. Speaker, notwithstanding the gains made under the IMF-supported Programme, that was achieved through the painful sacrifice of domestic bondholders, external creditors and taxpayers, the economy remains in distress,” the Finance Minister stated.
Addressing Parliament during the 2025 Budget Statement presentation, he noted that the economic recovery has come at a high cost, with sacrifices from domestic bondholders, external creditors, and taxpayers.
He expressed concern that key targets under the IMF programme, including inflation control, social protection spending, and the primary balance (commitment basis), are unlikely to be met when the IMF conducts its fourth review in April 2025. Even more worrying, all structural reforms that were supposed to be completed by the end of 2024 have fallen behind schedule.
Inflation, which directly affects the cost of living, worsened from 23.2% in 2023 to 23.8% in 2024, missing the government’s own budget target of 15% and the IMF’s target of 18%. This has sparked discussions with the IMF under its Monetary Policy Consultation Clause, as higher inflation puts extra pressure on household budgets and businesses.
The primary balance, measured on a commitment basis, also deteriorated significantly. The deficit widened from 0.2% of GDP in 2023 to 3.9% of GDP in 2024, far from the targeted surplus of 0.5% of GDP. The Finance Minister attributed this to a 4.4-percentage-point slippage recorded by the previous administration.
With these challenges, Hon. Dr. Cassiel Ato Forson assured Ghanaians that the government remains committed to stabilizing the economy. However, he acknowledged that the road ahead would require continued sacrifices and tough decisions.
