Post IMF; Has Austerity Really Ended?, ActionAid new report raises tough questions

As Ghana charts a new economic path following the successful completion of its International Monetary Fund (IMF) programme, a new ActionAid report is urging government, Parliament and citizens to confront a critical national question: Will Ghana break from years of austerity, or continue policies that limit investment in public services and decent jobs?

The report, Still Cooking with a Failed Recipe, argues that despite the IMF's global commitment to protecting social spending and promoting gender equality, its country-level advice continues to prioritize fiscal consolidation, debt repayment and public spending restraint over investments in health, education and social protection.

The findings come at a crucial moment for Ghana, where citizens continue to grapple with rising living costs, youth unemployment, pressure on public health facilities, teacher shortages and demands for expanded social protection.

According to the report, IMF recommendations across 11 countries—including Ghana continue to promote public sector wage restraint, targeted rather than universal social protection, and tax measures that often place a heavier burden on ordinary citizens than on wealth and corporate profits. 

For Ghana, the timing is significant. Although the country officially exited its IMF programme in May 2026, the report notes that previous IMF-supported reforms involved significant public spending cuts before the new government sought greater domestic control over fiscal policy. It further cites public calls from respected Ghanaian economist Dr. Ishmael Yamson, who questioned Ghana's repeated reliance on IMF support and challenged the country to avoid returning for another bailout. 

National Debate Shifts Beyond Debt

The report suggests that Ghana's economic recovery should not be measured solely by macroeconomic indicators such as inflation, exchange rate stability or fiscal surpluses.

Instead, it argues that the real test lies in whether economic policies create jobs for nurses, teachers and other frontline workers, improve access to quality education and healthcare, strengthen social protection and reduce inequalities.

Across the countries studied, the report found that IMF advice rarely assessed how debt repayments compete directly with spending on health and education, despite evidence that debt servicing often exceeds investments in essential public services. 

Growing Cost-of-Living Concerns

The report also links austerity policies to wider social challenges facing many African countries, including rising living costs, underfunded public services and increasing pressure on households.

It argues that women and young people often bear the greatest burden through unpaid care work, unemployment and reduced access to essential services. The report further maintains that expanding investment in public services is essential as countries respond to global economic shocks and inflation. 

The report recommends that Ghana use its post-IMF policy space to pursue more progressive taxation, strengthen universal public services, increase investments in health and education, and participate in global discussions on fairer debt restructuring mechanisms.

It also calls for reforms to the international financial architecture, arguing that countries need greater fiscal sovereignty to finance sustainable development and achieve the Sustainable Development Goals. 

Why This Matters

With Ghana entering a new phase of economic management, analysts say the national conversation is shifting from whether the country has exited the IMF programme to whether future economic policies will deliver tangible improvements in the lives of Ghanaians.

For many citizens, the central question is no longer simply about balancing the national budget—it is whether Ghana can build an economy that creates decent jobs, protects vulnerable households and invests sustainably in quality public services.

Written by Jacqueline Parditey