The International Monetary Fund (IMF) has praised the government for exhibiting stronger fiscal discipline in 2025, noting a marked departure from the previous year’s spending pattern.

IMF described the administration’s expenditure controls as a significant improvement on 2024, when elevated spending and depreciation of the cedi intensified inflationary pressures.

The IMF highlighted that this enhanced fiscal performance has contributed to narrowing the budget deficit, easing pressure on the cedi and strengthening price stability.

These measures have been instrumental in driving inflation down to single digits for the first time in four years.

The IMF Resident Representative to Ghana, Dr Adrian Alter said this on Channel One TV's yet to be aired exclusive interview. He emphasised that the combination of fiscal restraint and a tight monetary stance has been central to stabilising the economy.

Dr Alter remarked that fiscal discipline under the current administration is “much, much better” compared to the previous year, helping to close fiscal gaps and curb inflation.

He explained that the government’s prudent spending approach, coupled with the Bank of Ghana’s firm monetary policy, has delivered tangible results.

Inflation has fallen from approximately 24 percent in 2024 to 9.4 percent in September 2025, with expectations of further easing supported by a stabilising cedi.

Reflecting on last year’s inflation spike, he pointed to supply disruptions and currency weakness as primary drivers, noting the impact of drought on food prices and sharp cedi depreciation.

He commended the Bank of Ghana for maintaining a disciplined policy posture, including a reduction in the policy rate from 28 percent to 21.5 percent, which safeguarded price stability gains.

Dr Alter concluded that Ghana now stands on firmer macroeconomic ground, with fiscal and monetary policies aligned effectively. He cautioned, however, that continued discipline will be essential to sustaining investor confidence and anchoring inflation expectations.