The government of Ghana has announced a robust fiscal performance for 2025, alongside a broad-based macroeconomic turnaround, reversing economic challenges inherited from previous years.
Finance Minister Dr. Cassiel Ato Forson said in a Facebook post on Monday, February 23 that the year 2025 marked one of the most significant economic recoveries in Ghana’s history.
At the end of 2024, Ghana faced:
1.A primary balance deficit of 3.0% of GDP.
2.A 91-day Treasury bill rate of 27.7%.
3.Depreciation of the Ghana cedi by 19.2% against the US dollar.
4.Inflation at 23.8%.
Through fiscal discipline, expenditure controls, structural reforms, and prudent monetary policy, the government restored macroeconomic stability and placed public finances on a sustainable path.
Fiscal Performance Highlights for 2025:
1.The overall fiscal balance on a commitment basis recorded a deficit of 1.0% of GDP, outperforming the 2.8% target.
2.The primary balance on a commitment basis improved to a surplus of 2.6% of GDP, exceeding the target of 1.5%.
3.On a cash basis, the overall fiscal deficit stood at 3.1% of GDP (better than the 3.8% target), while the primary balance recorded a surplus of 0.5% of GDP.
Strong fiscal management and sound debt strategies helped reduce public debt from GH¢726.7 billion (61.8% of GDP) in December 2024 to GH¢641.0 billion (45.3% of GDP) in December 2025, one of the sharpest debt reductions in Ghana’s history.
Key Macroeconomic Gains:
1. Real GDP grew by a provisional 6.1% in the first three quarters of 2025, driven by services and agriculture, with non-oil growth reaching 7.5% (up from 5.8% in 2024).
2. Inflation fell for thirteen consecutive months, dropping from 23.5% in January 2025 to 3.8% in January 2026.
3. Interest rates have declined sharply, with the 91-day Treasury bill rate falling to 6.5%, lowering government borrowing costs.
3. Average commercial bank lending rates dropped from 30.25% in 2024 to 20.45% in 2025, creating more room for private sector credit.
4. Credit to the private sector expanded by GH¢17.1 billion in 2025, with further growth expected in 2026.
5. The Ghana cedi appreciated by 40.7% against the US dollar, 30.9% against the pound sterling, and 24.0% against the euro.
6. The current account recorded a surplus of US$9.1 billion by December 2025, up from US$1.5 billion in 2024, while gross international reserves reached US$13.8 billion, covering 5.7 months of imports.
Dr. Forson described the 2025 economic turnaround as broad-based and comprehensive, with remarkable improvements across all sectors.
He added that the government remains committed to sustaining these gains, creating jobs, and maintaining strong economic growth.
President John Dramani Mahama’s administration emphasized its focus on economic reforms to ensure long-term stability and prosperity for Ghanaians.
