Keep fuel subsidies temporary and well-targeted or risk fiscal damage – IMF warns Ghana

The International Monetary Fund (IMF) has cautioned the government that its recent fuel subsidy measures must remain temporary and carefully targeted to avoid undermining Ghana’s fiscal gains.

According to the IMF, debt sustainability indicators have improved significantly, although it cautioned that Ghana still has limited external debt service space and should continue to closely monitor non-resident participation in the domestic debt market.

The warning comes as Ghana continues implementing fiscal reforms under the IMF-supported programme aimed at restoring debt sustainability and macroeconomic stability.