NPP rejects IMF and govt’s claims of full economic graduation

The New Patriotic Party (NPP) has acknowledged recent findings by the International Monetary Fund (IMF), which indicate improvements in Ghana’s macroeconomic stability.

However, the party has rejected claims by government officials that the country has fully “graduated” from IMF oversight or that the programme has conclusively ended.

In a detailed statement, the opposition party welcomed the IMF’s recognition of stabilisation progress under Ghana’s sixth and final review of the Extended Credit Facility (ECF). It nevertheless accused the government of misrepresenting the Fund’s assessment and overstating the strength of the country’s economic recovery.

NPP challenges interpretation of IMF report

The party noted that Ghana’s transition into a new 36-month Policy Coordination Instrument (PCI) signals continued engagement with the IMF rather than full economic independence. According to the NPP, the PCI underscores the need for sustained monitoring to safeguard recent macroeconomic gains.

It further attributed much of the stabilisation progress to policy measures introduced in 2023 under the previous administration, as well as sacrifices made by citizens during the domestic debt exchange programme and external debt restructuring.

The NPP highlighted improvements in key debt indicators, stating that Ghana’s debt-to-GDP ratio fell from 72.5 percent in December 2023 to 61.8 percent in December 2024, and further to 45.3 percent by the end of 2025, with projections of around 53 percent in 2026.

The party also pointed to positive trends in inflation, foreign reserves, economic growth, and currency performance since 2023, arguing that these reflect policy continuity rather than a sudden turnaround.

Criticism of the government’s framing

A major focus of the statement was what the NPP described as “misleading political framing” of the IMF report. The party rejected suggestions that the programme “derailed” at the end of 2024, noting that the IMF did not use such terminology.

Instead, it said the Fund referred only to policy slippages, which it argued should not be equated with programme failure. The NPP maintained that a genuine derailment would have involved missed reviews, waivers, or renegotiations—none of which, it said, occurred after the December 2024 assessment.

It also referenced previous IMF arrangements, including the 2015 Extended Credit Facility programme, which it claimed went off track under a former NDC administration before being extended and restructured.

Structural risks and fiscal concerns

Responding to what it termed a distorted narrative, the NPP pointed to structural vulnerabilities highlighted in IMF assessments. These include risks within state-owned enterprises such as the Electricity Company of Ghana (ECG) and COCOBOD, quasi-fiscal operations outside the budget, financial sector weaknesses, and governance concerns, including gaps in asset declaration compliance.

The party also raised concerns about the Bank of Ghana’s balance sheet, particularly the fiscal implications of the domestic gold purchase programme. It argued that such costs should be fully reflected in the national budget to avoid hidden liabilities.

The NPP further expressed concern that the central bank is operating with negative net equity and called for a transparent, time-bound recapitalisation plan.

On fiscal policy, the party cautioned against interpreting IMF projections of constrained fiscal space from 2027 as justification for expanded spending or off-budget commitments. It urged government to prioritise productive investments in jobs, education, healthcare, and infrastructure.

Cost-of-living concerns

The statement also highlighted ongoing economic pressures facing households, including youth unemployment estimated at 32.4 percent nationally and up to 49 percent in urban centres such as Accra. It further cited rising food prices, rent increases, and utility tariff pressures as key challenges affecting livelihoods.

According to the NPP, these issues point to a disconnect between macroeconomic stabilisation indicators and the living conditions of ordinary citizens.

Conclusion

The party reaffirmed its support for reforms aimed at strengthening economic recovery and institutional credibility, while calling for continued transparency, accountability, and prudent management of public resources.

It stressed that macroeconomic stabilisation must ultimately translate into improved employment opportunities, higher incomes, and better living standards for Ghanaians.