Ghana has moved from IMF ‘supplicant’ to partner – Ato Forson declares as economy surges past $100 Billion

Ghana’s Finance Minister, Cassiel Ato Forson, has declared that Ghana will not require another International Monetary Fund (IMF )financial bailout “in the foreseeable future,” insisting that the country has moved from a position of economic dependence to one of partnership following what he described as a dramatic turnaround in the nation’s fortunes.

Delivering a statement in Parliament on Thursday, 28th May, 2026, Dr. Forson said the administration of President John Dramani Mahama inherited an economy in distress but acted decisively upon assuming office to restore stability, reset fiscal management, and bring Ghana’s IMF-supported programme back on track.

“Upon assuming office, President Mahama’s administration moved with clarity and purpose to reset the Ghanaian economy,” the Finance Minister told lawmakers, adding that the government recalibrated the IMF programme to ensure “fairer burden-sharing and deeper structural reform.”

In a sweeping account of the government’s economic recovery programme, Dr. Forson outlined a series of fiscal, institutional, and structural reforms implemented over the past year, many of which he said were aimed at restoring discipline in public finance management and rebuilding investor confidence.

Among the key interventions highlighted were the introduction of Public Financial Management commitment authorisation controls to curb excessive spending, an audit of government arrears to eliminate recycled payment claims and overpayments, and amendments to the PFM Act to institutionalise a 1.5 percent primary surplus target and a 45 percent debt-to-GDP ceiling by 2034.

The government also operationalised the Sinking Fund with dedicated cedi and dollar buffers to prepare for future debt repayments, established the Office of Value for Money to improve expenditure efficiency, and created an Independent Fiscal Council to monitor compliance with fiscal rules.

Dr. Forson further pointed to the introduction of GOLDBOD to support foreign exchange stability and reserve accumulation, as well as the removal of several taxes including the E-Levy, Betting Tax, Emissions Levy, and VAT on motor insurance.

The Finance Minister said the government also undertook aggressive expenditure rationalisation measures by reducing the number of ministers from 123 — later revised to 88 under the previous administration — to 60, while cutting the number of ministries from 30 to 23.

In the energy sector, he disclosed that government concluded renegotiations with Independent Power Producers, generating savings of more than US$250 million, while clearing over US$1 billion in legacy arrears.

According to Dr. Forson, the reforms have yielded what he described as “clear and measurable results.”

He announced that Ghana’s real GDP growth reached 6.0 percent in 2025, representing the highest post-pandemic expansion, while non-oil GDP growth climbed to 7.6 percent — the strongest performance in 14 years.

“For the first time, Ghana’s economy crossed the US$100 billion threshold in 2025,” he said, adding that the country is now ranked as the eighth-largest economy in Africa.

Per capita income, he noted, rose to US$3,385 for the first time.

On fiscal performance, Dr. Forson disclosed that the primary balance recorded a surplus of 2.5 percent of GDP in 2025, while the public debt-to-GDP ratio declined sharply from 61.8 percent in 2024 to 44.7 percent by the end of 2025.

He stressed that Ghana had achieved its 45 percent debt-to-GDP target far ahead of both the IMF programme timeline and the statutory target set for 2034 under the amended PFM Act.

The Finance Minister also highlighted a major improvement in debt sustainability indicators, revealing that debt service-to-domestic revenue had fallen from 55.7 percent in 2022 to 28.8 percent in 2025 despite the resumption of full Eurobond debt obligations.

He added that Ghana had moved from a “high risk” to a “moderate risk” of debt distress under the Debt Sustainability Analysis framework.

Inflation, which stood at 23.8 percent in December 2024, has declined to 3.4 percent as of April 2026, according to the Minister.

Treasury bill rates and bond yields have also fallen sharply, with the 91-day Treasury bill dropping from 28.4 percent in January 2025 to 4.8 percent by April 2026.

Similarly, the monetary policy rate has been reduced from 27 percent to 14 percent over the same period.

Dr. Forson also touted Ghana’s external sector performance, stating that the country recorded a current account surplus of 8.3 percent of GDP in 2025, while the cedi appreciated by 40.7 percent against the US dollar.

“These results affirm a simple but enduring truth: fiscal prudence and discipline always deliver results,” the Finance Minister declared.

He argued that macroeconomic stability should not be viewed as an abstract policy goal but rather as the foundation for jobs, incomes, investment, and long-term prosperity.

Referencing remarks made earlier this year by President Mahama at the 77th Annual New Year School, Dr. Forson reiterated the administration’s determination to end Ghana’s dependence on IMF bailouts.

“It is my hope that this will be the very last time we will ever go for a bailout from the IMF,” President Mahama had stated at the event, according to the Finance Minister.

Dr. Forson then delivered the government’s strongest signal yet on the future of Ghana’s engagement with the IMF.

“Consequently, no further IMF financial bailout will be required in the foreseeable future,” he declared.

“I repeat, no further IMF financial bailout will be required in the foreseeable future.”

He concluded with a symbolic declaration of Ghana’s new economic posture.

“We have evolved from a position of ‘supplicant’ to one of ‘partner’,” the Finance Minister told Parliament to loud approval from the Majority side.

المصدر: MyJoyOnline (GH)