Minister of Finance, Dr Cassiel Ato Forson
The government of Ghana has announced what it describes as one of the most significant economic turnarounds in the country’s history, citing strong fiscal consolidation, sharp declines in inflation and interest rates, currency appreciation, and a substantial reduction in public debt in 2025.
According to an official statement issued on February 23, 2026, the government said the 2025 fiscal year marked a decisive reversal of the economic pressures that characterised the end of 2024.
“At that time, the primary balance on a commitment basis stood at a deficit of 3.0 percent of GDP, the 91-day Treasury bill rate had climbed to 27.7 percent, the Ghana cedi had depreciated by 19.2 percent against the US dollar, and inflation was 23.8 percent,” the statement read.
The government attributed the turnaround to a combination of fiscal discipline, strict commitment controls, structural reforms, and prudent monetary policy, which restored macroeconomic stability and placed public finances on a sustainable path.
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Fiscal Performance
The 2025 fiscal outturn significantly outperformed targets:
• The overall fiscal balance on a commitment basis recorded a deficit of 1.0 percent of GDP, better than the 2.8 percent target.
• The primary balance on a commitment basis improved to a 2.6 percent surplus, exceeding the programmed surplus of 1.5 percent.
• On a cash basis, the overall fiscal deficit narrowed to 3.1 percent of GDP, outperforming the 3.8 percent target.
• The primary balance on a cash basis recorded a 0.5 percent surplus, compared to a projected deficit of 0.5 percent.
The government also attributed the improved fiscal position to strengthened revenue mobilisation and tighter expenditure controls.
Debt Reduction
Touching on the country’s public debt position, the government said the debt stock fell by GH¢82.1 billion, from GH¢726.7 billion (61.8 percent of GDP) in December 2024 to GH¢641.0 billion (45.3 percent of GDP) in December 2025, one of the sharpest declines in the country’s history.
Provisional data show that real GDP grew by 6.1 percent year-on-year in the first three quarters of 2025, driven mainly by the services and agriculture sectors. Non-oil GDP growth was even higher at 7.5 percent, compared to 5.8 percent in the same period in 2024.
Additionally, inflation declined for thirteen consecutive months, falling by 19.7 percentage points from 23.5 percent in January 2025 to 3.8 percent in January 2026. Over the broader 2024–2025 period, inflation dropped from 23.8 percent to 5.4 percent by the end of 2025.
“Interest rates also eased sharply. The 91-day Treasury bill rate fell from 27.7 percent at the end of 2024 to 11 percent by December 2025, and further to 6.5 percent in February 2026. The average commercial bank lending rate declined from 30.25 percent in 2024 to 20.45 percent in 2025, improving credit conditions for the private sector,” the statement said.
Credit to the private sector expanded by GH¢17.1 billion in 2025, with further growth expected in 2026.
Meanwhile, the Ghana cedi appreciated by 40.7 percent against the US dollar by the end of December 2025, reversing the 19.2 percent depreciation recorded in 2024. The currency also gained 30.9 percent against the pound sterling and 24.0 percent against the euro.
The country’s external position strengthened significantly, with the current account recording a surplus of US$9.1 billion, up from US$1.5 billion in 2024. Gross international reserves reached US$13.8 billion, enough to cover 5.7 months of imports.
The government described the 2025 turnaround as broad-based and comprehensive, with measurable improvements across all sectors of the economy.
The administration of President John Dramani Mahama said it remains committed to consolidating the gains achieved, focusing on job creation, sustained growth, and long-term economic transformation.
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