In what is being hailed as one of the most significant economic recoveries in the nation’s history, the Government of Ghana has announced a sweeping macroeconomic turnaround for the 2025 fiscal year.
Just over a year ago, the country faced a daunting economic landscape. By the end of 2024, the primary balance sat at a deficit of 3.0% of GDP, the 91-day Treasury bill rate was stifling at 27.7%, and the cedi had plummeted by 19.2% against the US dollar. However, today’s figures tell a vastly different story of recovery and resilience.
Through a rigorous combination of fiscal discipline, deepened structural reforms, and prudent monetary policy, the Mahama administration has successfully placed public finances back on a sustainable path.
The 2025 fiscal outcomes have consistently outperformed targets:
● Primary Balance: Recorded a surplus of 2.6% of GDP, significantly exceeding the 1.5% target.
● Overall Fiscal Balance: The deficit was narrowed to 1.0% of GDP (on a commitment basis), far better than the projected 2.8%.
- ● Debt Reduction: In one of the sharpest declines in Ghana’s history, the public debt stock was slashed by GH¢82.1 billion. Debt-to-GDP has fallen from 61.8% in 2024 to 45.3% in 2025.
A Rebound Across All Indicators
The turnaround is not limited to government ledgers; it is being felt across the broader economy. Real GDP growth strengthened to a provisional 6.1% in the first three quarters of 2025, with the non-oil sector growing at an even more impressive 7.5%.
Key Highlights of the Turnaround:
● Inflation Crash: Inflation has fallen for thirteen consecutive months, dropping from 23.5% in January 2025 to a mere 3.8% in January 2026.
● Currency Strength: The Ghana cedi staged a remarkable comeback, appreciating against the US dollar by 40.7% by the end of 2025.
● Interest Rates: The 91-day Treasury bill rate plummeted from 27.7% to 6.5%, drastically reducing the cost of borrowing for both the government and the private sector.
● Trade & Reserves: The current account surplus swelled to US$9.1 billion, while gross international reserves reached US$13.8 billion enough to cover 5.7 months of imports.
Empowering the Private Sector
The cooling of the economy has provided much-needed oxygen to Ghanaian businesses. Commercial bank lending rates dropped from 30.25% to 20.45% over the past year. This shift saw credit to the private sector expand by GH¢17.1 billion in 2025, a trend the government expects to accelerate through 2026.
“The macroeconomic turnaround is broad-based and comprehensive,” the government statement noted. “All sectors of the Ghanaian economy have witnessed remarkable improvement.”
Commitment to Transformation
President John Dramani Mahama’s administration has reaffirmed its commitment to sustaining these hard-won gains. The focus now shifts toward leveraging this newfound stability to drive job creation and long-term economic transformation.
With inflation at record lows and the currency stabilizing, the government maintains that the foundation has been laid for a new era of Ghanaian prosperity.
