UK-based research firm Fitch Solutions has stated that Ghana is expected to maintain its fiscal consolidation efforts in line with its ongoing International Monetary Fund (IMF) program.

According to Fitch Solutions, it is unlikely that Ghana will withdraw from the IMF arrangement following unsuccessful renegotiation attempts, given the country's reliance on IMF support for external stability.

"We think it is highly unlikely that the authorities will pull out of the programme following unsuccessful renegotiation attempts, given Ghana’s reliance on IMF assistance for external stability," Fitch Solutions stated.

The firm emphasized that IMF funding remains critical for Ghana’s foreign exchange liquidity and underpins investor confidence in the country’s economic management, making it essential for macroeconomic stability.
Fiscal Tightening to Face Public Pushback

Fitch Solutions noted that while fiscal tightening will help stabilize the economy, it is likely to face public resistance. Despite inflation easing from a peak of 53.6% in January 2023 to 23.5% in January 2025, it remains well above the 10-year pre-pandemic average of 12.1%.

The combination of reduced government spending and a higher tax burden is expected to place further strain on household finances, fueling discontent among the population.

"This will keep protest activity high by historical standards, although we note that demonstrations will remain localized and short-lived, posing minimal risks to commercial operations," Fitch Solutions added.

SP/MA