Hon. Dr. Cassiel Ato Forson, Ghana’s Finance Minister, has highlighted the 2025 fiscal performance and broad-based macroeconomic turnaround for Ghana.
Details of the highlights are provided below:
“The year 2025 marked one of the most significant economic turnarounds in Ghana’s history.
The Government successfully reversed the economic challenges it inherited, as evidenced by the following end-2024 indicators:
i. The primary balance on a commitment basis recorded a deficit of 3.0 percent of GDP.
ii. The 91-day Treasury bill rate stood at an extremely high 27.7%.
iii. The Ghana cedi depreciated by 19.2% against the US dollar.
iv. Inflation was high at 23.8%.
Through a combination of fiscal discipline, strict commitment controls, deepened structural reforms, and prudent monetary policy, macroeconomic stability has been restored and public finances have been placed back on a sustainable path.
Reforms in revenue mobilization and expenditure control anchored fiscal performance in 2025, resulting in the following outcomes:
i. The overall fiscal balance on a commitment basis recorded a deficit of 1.0% of GDP, significantly outperforming the target deficit of 2.8% of GDP.
ii. The primary balance on a commitment basis improved significantly to a surplus of 2.6% of GDP, exceeding the target surplus of 1.5% of GDP.
iii. The overall fiscal balance on a cash basis recorded a deficit of 3.1% of GDP, better than the target deficit of 3.8% of GDP.
iv. The primary balance on a cash basis achieved a surplus of 0.5% of GDP.
The strong outturn in the 2025 fiscal performance, coupled with sound debt management strategies, resulted in lower public debt levels.
Ghana’s public debt stock reduced significantly by GH¢82.1 billion, from GH¢726.7 billion (61.8% of GDP) in December 2024 to GH¢641.0 billion (45.3% of GDP) in December 2025. This represents one of the sharpest debt reductions in Ghana’s history.
Beyond fiscal consolidation, significant macroeconomic gains were also delivered, with key indicators rebounding strongly.
Key Macroeconomic Performance Highlights:
A. Real GDP growth strengthened, with a provisional 6.1% year-on-year growth recorded in the first three quarters of 2025, driven mainly by services and agriculture.
B. Non-oil growth was even higher at 7.5% in the first three quarters of 2025, compared to 5.8% during the same period in 2024.
C. Inflation fell for thirteen consecutive months, declining sharply by 19.7 percentage points, from 23.5% at the end of January 2025 to 3.8% at the end of January 2026.
D. Interest rates declined sharply, with the 91-day Treasury bill rate dropping from 27.7% at the end of 2024 to 6.5% in February 2026, thereby lowering government borrowing costs and freeing up credit for the private sector.
E. The average commercial bank lending rate fell significantly from 30.25% in 2024 to 20.45% in 2025. With inflation currently at 3.8%, the downward trend is expected to continue.
F. Credit to the private sector expanded by GH¢17.1 billion in 2025, with further growth projected in 2026.
G. The cedi appreciated against the US dollar by 40.7% by end-December 2025, 30.9% against the pound sterling, and 24.0% against the euro.
H. The external position strengthened, with the current account recording a surplus of US$9.1 billion by end-December 2025, up from US$1.5 billion in 2024.
I. Gross international reserves reached US$13.8 billion, sufficient to cover 5.7 months of imports.
The macroeconomic turnaround is broad-based and comprehensive. All sectors of the Ghanaian economy have witnessed remarkable improvement.
For emphasis, between 2024 and 2025:
i. Inflation reduced significantly from 23.8% to 5.4% and is currently at 3.8%.
ii. The cedi appreciated against the US dollar by 40.7% in 2025, compared to a depreciation of 19.2% in 2024.
iii. The 91-day Treasury bill rate reduced from a high of 27.7% in December 2024 to 11% in December 2025 and is currently at 6.5%.
iv. Public debt reduced significantly by GH¢82.1 billion, from GH¢726.7 billion (61.8% of GDP) in December 2024 to GH¢641.0 billion (45.3% of GDP) in December 2025.
President John Dramani Mahama’s administration remains committed to sustaining these gains to create jobs and place the economy on a path of strong growth and long-term economic transformation.“
