By Ashiadey Dotse
The Minister for Finance, Dr. Cassiel Ato Baah Forson, has announced what he describes as one of the most significant economic recoveries in Ghana’s history, following what he calls a robust fiscal performance in 2025 and a broad-based macroeconomic turnaround.
The Minister in a Facebook post on Monday February 23, 2026, Dr. said the economy in 2025 reversed major challenges inherited at the end of 2024.
According to him, by December 2024, the country faced serious economic pressure, with a primary balance deficit of 3.0 percent of GDP, a high 91-day Treasury bill rate of 27.7 percent, inflation at 23.8 percent, and a 19.2 percent depreciation of the cedi against the US dollar.
He noted that through fiscal discipline, strict spending controls, structural reforms and prudent monetary policies, the government has restored macroeconomic stability and placed public finances on a sustainable path.
Strong Fiscal Performance in 2025
The Finance Minister disclosed that reforms in revenue collection and expenditure management significantly improved fiscal outcomes in 2025.
He said the overall fiscal deficit on commitment basis narrowed to 1.0 percent of GDP, outperforming the 2.8 percent target. The primary balance also recorded a surplus of 2.6 percent of GDP, exceeding the initial target of 1.5 percent.
On cash basis, the fiscal deficit stood at 3.1 percent of GDP, better than the projected 3.8 percent, while the primary balance recorded a surplus of 0.5 percent, instead of the expected deficit.
Dr. Forson said the improved fiscal performance, together with sound debt management strategies, led to a sharp reduction in public debt.
Public Debt Drops by GH¢82 Billion
Ghana’s total public debt declined by GH¢82.1 billion, from GH¢726.7 billion in December 2024 to GH¢641.0 billion in December 2025.
In GDP terms, debt fell from 61.8 percent to 45.3 percent — one of the largest reductions in the country’s history.
Inflation, Interest Rates and Cedi See Major Improvement
The Minister further announced significant gains across key macroeconomic indicators.
Real GDP grew by 6.1 percent in the first three quarters of 2025, driven mainly by services and agriculture. Non-oil growth was even stronger at 7.5 percent.
Inflation declined for thirteen consecutive months, dropping sharply from 23.5 percent in January 2025 to 3.8 percent by January 2026.
Interest rates also fell substantially. The 91-day Treasury bill rate dropped from 27.7 percent at the end of 2024 to 6.5 percent in February 2026. The average commercial bank lending rate also reduced from 30.25 percent in 2024 to 20.45 percent in 2025.
Credit to the private sector increased by GH¢17.1 billion in 2025, with further expansion expected this year.
The Ghana cedi appreciated strongly in 2025, gaining 40.7 percent against the US dollar, 30.9 percent against the pound sterling, and 24 percent against the euro.
Strong External Position
Ghana’s external sector also recorded significant gains. The current account posted a surplus of US$9.1 billion by the end of December 2025, compared to US$1.5 billion in 2024.
Gross international reserves reached US$13.8 billion, enough to cover 5.7 months of imports.
Commitment to Sustaining Gains
Dr. Forson said the turnaround is broad-based, with all sectors of the economy showing improvement.
He stressed that the administration of President John Dramani Mahama remains committed to sustaining the gains to create jobs, promote strong growth, and drive economic transformation.
The Minister assured Ghanaians that government will continue to implement prudent policies to maintain stability and build a resilient economy.
