Government Reports Strong 2025 Fiscal Performance and Broad Macroeconomic Recovery – Hon Ato Forson

The Government has announced a robust fiscal performance for 2025, describing the year as one of the most significant economic turnarounds in Ghana’s history.

According to official data, the economy has rebounded strongly following the challenges recorded at the end of 2024, when key macroeconomic indicators reflected considerable strain. At end-2024, the primary balance on a commitment basis stood at a deficit of 3.0 percent of GDP, the 91-day Treasury bill rate was elevated at 27.7 percent, the Ghana cedi had depreciated by 19.2 percent against the US dollar, and inflation was high at 23.8 percent.

Government attributes the turnaround to a combination of fiscal discipline, strict commitment controls, deepened structural reforms, and prudent monetary policy, which it says have restored macroeconomic stability and placed public finances on a sustainable path.

Strong Fiscal Outturn in 2025

Reforms in revenue mobilisation and expenditure control anchored fiscal operations in 2025, resulting in performance that exceeded targets across key indicators.

The overall fiscal balance on a commitment basis recorded a deficit of 1.0 percent of GDP, significantly outperforming the target of 2.8 percent. The primary balance on a commitment basis improved to a surplus of 2.6 percent of GDP, surpassing the target surplus of 1.5 percent.

On a cash basis, the overall fiscal balance recorded a deficit of 3.1 percent of GDP, better than the target of 3.8 percent, while the primary balance achieved a surplus of 0.5 percent of GDP.

The strong fiscal outturn, coupled with sound debt management strategies, contributed to a substantial reduction in public debt. Ghana’s public debt stock declined 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 reductions in the country’s history.

Broad-Based Macroeconomic Gains

Beyond fiscal consolidation, the economy recorded significant improvements across major macroeconomic indicators.

Real GDP growth strengthened, with provisional year-on-year growth of 6.1 percent in the first three quarters of 2025, driven largely by services and agriculture. Non-oil growth was even stronger at 7.5 percent, compared to 5.8 percent during the same period in 2024.

Inflation declined for thirteen consecutive months, falling sharply by 19.7 percentage points—from 23.5 percent at the end of January 2025 to 3.8 percent by the end of January 2026.

Interest rates also dropped markedly. The 91-day Treasury bill rate fell from 27.7 percent at end-2024 to 11 percent in December 2025 and further to 6.5 percent in February 2026, easing government borrowing costs and creating room for increased private sector credit.

The average commercial bank lending rate decreased from 30.25 percent in 2024 to 20.45 percent in 2025, with further declines expected amid the sustained drop in inflation.

Credit to the private sector expanded by GH¢17.1 billion in 2025, with additional growth projected in 2026.

The Ghana cedi also strengthened  considerably, appreciating by 40.7 percent against the US dollar by end-December 2025, 30.9 percent against the pound sterling, and 24.0 percent against the euro.

Ghana’s external position improved significantly, with the current account recording a surplus of US$9.1 billion at end-December 2025, compared to US$1.5 billion in 2024. Gross international reserves rose to US$13.8 billion, providing import cover for 5.7 months.

A Comprehensive Turnaround

Government maintains that the macroeconomic recovery is broad-based, with all sectors of the economy experiencing improvement.

Between 2024 and 2025, inflation fell from 23.8 percent to 5.4 percent and has since declined further to 3.8 percent. Over the same period, the cedi reversed a 19.2 percent depreciation recorded in 2024 to achieve a 40.7 percent appreciation in 2025. The 91-day Treasury bill rate dropped from 27.7 percent in December 2024 to 6.5 percent by February 2026, while public debt declined by GH¢82.1 billion year-on-year.

The Government says the sustained improvements reflect firm policy implementation and a commitment to maintaining macroeconomic stability, fiscal prudence, and inclusive growth.