Economic think tank, Institue of Fiscal Studies, (IFS), has said that The implementation of the 2023-2026 Extended Credit Facility-supported Programme with the International Monetary Fund (IMF) starting from 2023 has helped to reduce the excessive instability the Ghanaian economy went through as part of the 2022 fiscal and macroeconomic crisis.
However, IFS notes that the Ghanaian economy "remains very unstable, as inflation rate, the cedi depreciation rate and the other macroeconomic stability indicators remain stubbornly very high." On inflation, IFS said in a report that the disinflation process, which began in January 2023 and which saw inflation rate reduce from 54.1% in December 2022 to 23.2% in December 2023, has stalled, as inflation rate continued to stay above 20% (at 23.5%) in January 2025.
Given that inflation rate began to cross the 20% mark in April 2022 (at 23.6%), it implies that the current crisis has caused inflation rate to stay above 20% for 34 consecutive months now. "This is very problematic, since such an extended period of time with inflation rate in Ghana exceeding 20% was thought to be a thing of the past.
This is because before the current crisis, it had been absent in the country for the past two decades.
